TITLE:
The Impact of Qualified Foreign Institutional Investors on Controlling Shareholder’s Tunneling: Evidence of Listed Companies in China
AUTHORS:
Zhenyu Li
KEYWORDS:
QFII, Tunneling, Corporate Governance
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.7 No.4,
April
30,
2017
ABSTRACT: Based on the data of the listed companies of Shanghai Stock Exchange and
Shenzhen Stock Exchange from 2012 to 2015, we studied the impact of qualified
foreign institutional investors (QFII) on the tunneling of listed companies’
major shareholders. The results show that QFII can effectively control the
behavior of tunneling of the substantial shareholder of listed companies, and the
inhibitory effects are different in the different ownership companies. QFII can
inhibit the behavior of tunneling of the substantial shareholder of state-owned
enterprises and private enterprises, and the inhibition effect is better in
private enterprises. However, there is no inhibition effect on the behavior of
tunneling of the substantial shareholder of foreign-funded enterprises.