Can a not-for-profit minority institutional shareholder impede stock price crash risk: Evidence from China

Yi Hu, Shuchang Jin, Qiankun Gu and Ziling Tang

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: The China Securities Regulatory Commission (CSRC) authorized the China Securities Investor Service Center (CSISC), an affiliate of CSRC, to buy and hold 100 shares of each listed firm in the pilot regions in January 2016. We investigate the effects of the CSISC shareholding pilot program on stock price crash risk. We find CSISC shareholding significantly reduces stock price crash risk, especially among firms with poor internal and external governance. We also find the negative effect is more prominent for firms without political connections and with a low propensity for minority shareholder activism. We contribute to the studies on minority shareholder protections and enrich the literature on both the stock price crash risk and the economic consequence of CSICS shareholding.

Keywords: China securities investor service center; Stock price crash risk; Corporate governance (search for similar items in EconPapers)
JEL-codes: G12 G34 G38 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322002148
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612322002148

DOI: 10.1016/j.frl.2022.102961

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().