Three essays on the share structure reform in China

In China, prior to April 29, 2005, about two thirds of all outstanding shares were mainly help by the government or government-linked agencies and cannot be traded in the open market. Only about one third of all outstanding shares, mainly held by individuals and some institutional investors, can be...

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Main Author: Zhu, Yanjian
Other Authors: Zhang Shaojun
Format: Theses and Dissertations
Language:English
Published: 2009
Subjects:
Online Access:https://hdl.handle.net/10356/18860
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-188602024-01-12T10:32:11Z Three essays on the share structure reform in China Zhu, Yanjian Zhang Shaojun Nanyang Business School DRNTU::Business::Finance::Equity In China, prior to April 29, 2005, about two thirds of all outstanding shares were mainly help by the government or government-linked agencies and cannot be traded in the open market. Only about one third of all outstanding shares, mainly held by individuals and some institutional investors, can be traded freely. The split structure casued many serious problems: e.g (1) deviation of price from fundamental values. The majority shareholders who made corporate policies and had the control of the company’s profits and assets were indifferent to the fluctuations on stock prices. Too many investors were chasing limited number of tradable shares. The stock market was more like a casino than in intermediary channel of capital; (2) weak corporate governance and minority shareholder protection. Over half of all outstanding shares are restricted from free trading. Takeovers in the open market seldom occur. Due to the certain historical reason, controlling shareholders have incentives to extract some wealth from listed companies at the expense of minority shareholders. Such incentives cannot be threatened by open-market takeovers. Minority tradable shareholders were weakly protected. DOCTOR OF PHILOSOPHY (NBS) 2009-07-20T07:24:14Z 2009-07-20T07:24:14Z 2008 2008 Thesis Zhu, Y. J. (2008). Three essays on the share structure reform in China. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/18860 10.32657/10356/18860 en 166 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Finance::Equity
spellingShingle DRNTU::Business::Finance::Equity
Zhu, Yanjian
Three essays on the share structure reform in China
description In China, prior to April 29, 2005, about two thirds of all outstanding shares were mainly help by the government or government-linked agencies and cannot be traded in the open market. Only about one third of all outstanding shares, mainly held by individuals and some institutional investors, can be traded freely. The split structure casued many serious problems: e.g (1) deviation of price from fundamental values. The majority shareholders who made corporate policies and had the control of the company’s profits and assets were indifferent to the fluctuations on stock prices. Too many investors were chasing limited number of tradable shares. The stock market was more like a casino than in intermediary channel of capital; (2) weak corporate governance and minority shareholder protection. Over half of all outstanding shares are restricted from free trading. Takeovers in the open market seldom occur. Due to the certain historical reason, controlling shareholders have incentives to extract some wealth from listed companies at the expense of minority shareholders. Such incentives cannot be threatened by open-market takeovers. Minority tradable shareholders were weakly protected.
author2 Zhang Shaojun
author_facet Zhang Shaojun
Zhu, Yanjian
format Theses and Dissertations
author Zhu, Yanjian
author_sort Zhu, Yanjian
title Three essays on the share structure reform in China
title_short Three essays on the share structure reform in China
title_full Three essays on the share structure reform in China
title_fullStr Three essays on the share structure reform in China
title_full_unstemmed Three essays on the share structure reform in China
title_sort three essays on the share structure reform in china
publishDate 2009
url https://hdl.handle.net/10356/18860
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