Tunneling through non-operational fund occupancy: An investigation based on officially identified activities

• Main Authors: JIANG, Guohua, RAO, Pingui, YUE, Heng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Tunneling; Non-Operational Fund Occupancy; Large shareholders; China; Accounting; Business Administration, Management, and Operations
• Online Access: https://ink.library.smu.edu.sg/soa_research/1671; https://ink.library.smu.edu.sg/context/soa_research/article/2698/viewcontent/1_s20_S0929119914001278_main__1_.pdf
• Institution: Singapore Management University

In this paper, we investigate the problem of controlling shareholder Non-Operational Fund Occupancy (NOFO) in China, where controlling shareholders directly take funds away from listed firms without matching business transactions. The NOFO problem was an evident and widely used tunneling activity in...