Accounting-Based Regulation and Protection of Minority Shareholders

• Main Authors: WANG, Jiwei, CHEN, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Accounting; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/77
• Institution: Singapore Management University

This paper examines the impact of a seasonal equity offering (SEO) regulation based on accounting profitability numbers (accounting-based regulation hereafter) on the stock market in China. Although positive accounting theory predicts that regulations based on accounting numbers could induce entrant...