Equity concentration and investment efficiency of energy companies in China: Evidence based on the shock of deregulation of QFIIs

Jiangyuan Wang, Hua Wang and Di Wang

Energy Economics, 2021, vol. 93, issue C

Abstract: This paper empirically tests the impact of equity concentration on the investment efficiency of Chinese energy companies based on the shock that the shareholding ratio restriction of qualified foreign institutional investors (QFIIs) is relaxed. We find that equity concentration significantly improves energy companies' investment efficiency in China. Equity concentration affects the investment efficiency by influencing the first type of agency cost and the information environment. Equity concentration plays a significant role in improving the investment efficiency when the decision-making power is decentralized while the external environment is complex.

Keywords: Equity concentration; Investment efficiency; Agency cost; Information environment (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:93:y:2021:i:c:s0140988320303728

DOI: 10.1016/j.eneco.2020.105032

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