Stock liquidity and controlling shareholders' encroachment of private interests: Evidence from China

Xiqiong He, Xiang Gu and Hao Liu

Finance Research Letters, 2023, vol. 56, issue C

Abstract: This paper investigated the effects of stock liquidity on controlling shareholders’ encroachment of private interests. It showed that stock liquidity positively affects controlling shareholders’ encroachment of private interests in China's listed companies. Further, institutional investor ownership and stock price crash risk have a mediating effect on stock liquidity toward controlling shareholders’ encroachment of private interests, respectively. This research strives to provide valuable insights for management to strengthen stock liquidity assessment and improve corporate governance.

Keywords: Stock liquidity; Encroachment of interests; Institutional investor ownership; Stock price crash risk (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004920

DOI: 10.1016/j.frl.2023.104120

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