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- Publisher Website: 10.1016/j.pacfin.2011.07.002
- Scopus: eid_2-s2.0-79961104970
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Article: Connected transactions and firm value: Evidence from China-affiliated companies
Title | Connected transactions and firm value: Evidence from China-affiliated companies |
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Authors | |
Keywords | Corporate Governance Firm Value Related Party Transaction Tunneling |
Issue Date | 2011 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/pacfin |
Citation | Pacific Basin Finance Journal, 2011, v. 19 n. 5, p. 470-490 How to Cite? |
Abstract | This paper investigates tunneling through related-party transactions (RPT) using a unique dataset of listed Chinese companies in Hong Kong. While prior findings suggest that investors do not seem to systematically discount tunneling firms, we find that firm value (Tobin's q and market-to-book value) is significantly lower for firms undertaking potentially expropriating transactions. In addition, cumulative abnormal returns (CAR) are lower for RPTs with disclosure exemptions and are negatively related to some RPT types. Our results suggest that firms tunnel using RPTs with disclosure exemptions and that disclosure requirements matter for RPTs. These RPTs could signal firms' corporate-governance quality, as investors substantially discount firms that undertake potentially expropriating transactions. © 2011 Elsevier B.V. |
Persistent Identifier | http://hdl.handle.net/10722/177788 |
ISSN | 2023 Impact Factor: 4.8 2023 SCImago Journal Rankings: 1.137 |
SSRN | |
ISI Accession Number ID | |
References |
DC Field | Value | Language |
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dc.contributor.author | Lei, ACH | en_US |
dc.contributor.author | Song, FM | en_US |
dc.date.accessioned | 2012-12-19T09:39:54Z | - |
dc.date.available | 2012-12-19T09:39:54Z | - |
dc.date.issued | 2011 | en_US |
dc.identifier.citation | Pacific Basin Finance Journal, 2011, v. 19 n. 5, p. 470-490 | en_US |
dc.identifier.issn | 0927-538X | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/177788 | - |
dc.description.abstract | This paper investigates tunneling through related-party transactions (RPT) using a unique dataset of listed Chinese companies in Hong Kong. While prior findings suggest that investors do not seem to systematically discount tunneling firms, we find that firm value (Tobin's q and market-to-book value) is significantly lower for firms undertaking potentially expropriating transactions. In addition, cumulative abnormal returns (CAR) are lower for RPTs with disclosure exemptions and are negatively related to some RPT types. Our results suggest that firms tunnel using RPTs with disclosure exemptions and that disclosure requirements matter for RPTs. These RPTs could signal firms' corporate-governance quality, as investors substantially discount firms that undertake potentially expropriating transactions. © 2011 Elsevier B.V. | en_US |
dc.language | eng | en_US |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/pacfin | en_US |
dc.relation.ispartof | Pacific Basin Finance Journal | en_US |
dc.subject | Corporate Governance | en_US |
dc.subject | Firm Value | en_US |
dc.subject | Related Party Transaction | en_US |
dc.subject | Tunneling | en_US |
dc.title | Connected transactions and firm value: Evidence from China-affiliated companies | en_US |
dc.type | Article | en_US |
dc.identifier.email | Song, FM: fmsong@hkucc.hku.hk | en_US |
dc.identifier.authority | Song, FM=rp01095 | en_US |
dc.description.nature | link_to_subscribed_fulltext | en_US |
dc.identifier.doi | 10.1016/j.pacfin.2011.07.002 | en_US |
dc.identifier.scopus | eid_2-s2.0-79961104970 | en_US |
dc.relation.references | http://www.scopus.com/mlt/select.url?eid=2-s2.0-79961104970&selection=ref&src=s&origin=recordpage | en_US |
dc.identifier.volume | 19 | en_US |
dc.identifier.issue | 5 | en_US |
dc.identifier.spage | 470 | en_US |
dc.identifier.epage | 490 | en_US |
dc.identifier.isi | WOS:000295435200002 | - |
dc.publisher.place | Netherlands | en_US |
dc.identifier.ssrn | 2200784 | - |
dc.identifier.scopusauthorid | Lei, ACH=45661682900 | en_US |
dc.identifier.scopusauthorid | Song, FM=7203075605 | en_US |
dc.identifier.citeulike | 9629234 | - |
dc.identifier.issnl | 0927-538X | - |