Insider Stock Ownership and Earnings Persistence: Evidence from China

Lin Minsi, Fazlida Mohd Razali (), Razana Juhaida Johari and Nur Syuhada Jasni
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Lin Minsi: Universiti Teknologi MARA, Malaysia & School of Economics and Management, Minjiang University
Fazlida Mohd Razali: Universiti Teknologi MARA, Malaysia & Faculty of Accountancy, Universiti Teknologi MARA
Razana Juhaida Johari: Universiti Teknologi MARA
Nur Syuhada Jasni: Universiti Teknologi MARA

Public Organization Review, 2025, vol. 25, issue 2, No 13, 613-632

Abstract: Abstract This study examines the impact of insider stock ownership on earnings persistence within the framework of agency theory following the 2018 implementation of a revised Code of Corporate Governance of Listed Companies in China. Analyzing data from A-share firms on the Shanghai and Shenzhen exchanges from 2018 to 2021, the results show a significant positive impact of ownership by boards of directors, executives, and actual controllers on earnings persistence. Supervisory board ownership did not have a significant impact on earnings persistence. These findings bring attention to issues concerning the efficacy of internal governance in Chinese listed firms.

Keywords: Insider Stock Ownership; Supervisory Board; Agency Theory; Earnings Persistence (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11115-025-00830-3

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