Related Party Transactions and Institutional Investors in Chinese Listed Companies

Advances in Pacific Basin Business, Economics and Finance

ISBN: 978-1-78756-446-6, eISBN: 978-1-78756-445-9

ISSN: 2514-4650

Publication date: 6 September 2018

Abstract

We study institutional investors’ influence on the use of related party transactions (RPTs) in China. We test the significance of potential factors in the cross-sectional regression analysis of the amount of RPTs reported by Chinese listed companies. We also analyze intraday trading activities and stock prices in days around public announcements of RPTs. Our findings suggest that institutional investors do not have a significant influence on Chinese firms’ usage of RPTs but they react to RPT announcements through buying or selling shares.

Keywords

Citation

Hwang, C., Zhang, S. and Zhu, Y. (2018), "Related Party Transactions and Institutional Investors in Chinese Listed Companies", Advances in Pacific Basin Business, Economics and Finance (Advances in Pacific Basin Business, Economics and Finance, Vol. 6), Emerald Publishing Limited, pp. 1-25. https://doi.org/10.1108/S2514-465020180000006001

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Emerald Publishing Limited

Copyright © 2018 Emerald Publishing Limited

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