The Exit Threat of Non-controlling Major Shareholders and Corporate Financial Risk
DOI:
https://doi.org/10.54097/hbem.v5i.5280Keywords:
Exit Threat, Financial Risk, Corporate Governance.Abstract
Corporate governance plays a crucial part in corporate financial risk but the traditional means of corporate governance are limited. The means of corporate governance based on the exit threat of non-controlling major shareholders have been paid more and more attention. Based on this, this paper selects the China's A-share non-financial listed corporates from 2011 to 2021 as samples to explore the relationship between the exit threat of non-controlling major shareholders and corporate financial risk. It is found that exit threat can lower the financial risk of corporates; the reduction effect is more significantly for large scale and state-owned companies; high ownership concentration and high return on assets can strengthen the reduction effect of the exit threat on financial risk. This paper confirms the governance role of exit threat, and provides a new way to reduce financial risk for companies.
Downloads
References
Zhu Jigao, Ye Kangtao, Lu Zhengfei Who is the more active supervisor: non controlling shareholder directors or independent directors? [J]. Economic Research, 2015, 50 (09): 170-184.
Yiwei Dou et al. Blockholder Exit Threats and Financial Reporting Quality [J]. Contemporary Accounting Research, 2018, 35(2): 1004-1028.
Xie Lixu, Zhang Xindong, Wang Dong. Research on the Influence Mechanism of Short Selling Mechanism on the Volatility of Underlying Stocks——An Empirical Test Based on ARMA-GARCH Models [J]. Contemporary Economy, 2021, (08): 22-25.
Chen Kejing. Exit Threat and Corporate Governance: Based on the Perspective of Earnings Management [J]. Financial Research, 2018, 44 (11): 18-32.
Yu Nutao, Zhang Huayu, Qin Qing. Non-controlling Shareholders and Corporate Irregularities: Governance or Collusion [J]. Financial Research, 2021, (06): 60-72.
SREEDHAR T. BHARATH and SUDARSHAN JAYARAMAN and VENKY NAGAR. Exit as Governance: An Empirical Analysis[J]. The Journal of Finance, 2013, 68(6): 2515-2547.
Tang Yuejun, Song yuanyang. Value Choice VS. Value Creation: Evidence from Institutional Investors in Chinese Market [J]. Economics (Quarterly), 2010, 9 (02): 609-632.
Li Yi. Financial Risk Analysis of Diversified Development of Internet Enterprises — — Taking Company D as an Example [J]. China Collective Economy, 2022, (31): 139-141.
Liu Xinghua, Shi Hanlin. Digital Finance and Corporate Financial Risk: An Empirical Study Based on Shanghai and Shenzhen A-share Listed Companies [J]. Journal of Yangtze University (Social Science Edition): 1-11.
Li Zhuangzhuang, Li Qiang. Non-controlling shareholder exit threat and enterprise innovation [J]. Accounting Monthly, 2020, (21): 38-45.
Wang Jing, Ma Jing, Jiang Ming Research on the Impact of Major Shareholder Exit Threat on the Quality of Environmental Information Disclosure [J]. Productivity Research, 2022, (10): 101-106.
Gao Yan, Xie Quan, Zeng Sen, Liu Fang, Qin Chuyu. Non-controlling shareholder's exit threat, information transparency and cost of equity capital [J]. Accounting Newsletter, 2022, (18): 67-72 + 141.
Chen Peiyou, Yang Beibei, Gao Taiguang. Non-controlling shareholder exit threat and executive compensation stickiness [J]. Accounting Monthly, 2022, (18): 25-34.
Liu Yan. The exit threat of large shareholders and the level of cash holdings [J]. Business Accounting, 2022, (06): 87-92.
Li Xiaodong. Financial Risk Prevention and Control Status and Avoidance Strategies of Chinese Enterprises [J]. Modern Business, 2022, (16): 153-155.
Xu Wei, Xiao Zhi. The Nonlinear Characteristics of the Influence of Internal Control on Enterprise Financial Risk: Theoretical Deduction and Empirical Test [J]. Modern Finance and Economics (Journal of Tianjin University of Finance and Economics), 2019, 39 (03): 68-82.
Dou, Y., Hope, O. K., Thomas, W. B., Zou, Y. Blockholder Exit Threats and Financial Reporting Quality [J]. Contemporary Accounting Research, 2018, 35 (2): 1004-1028.
Tan Xiaoyu, Chen Yuxin. Statistical test of the impact of enterprise financialization on financial risk [J]. Statistics and Decision-making, 2022, (19): 158-163.
Jiang Fuxiu, Ma Yunbao, Wang Yuntong. Can the threat of exit curb controlling shareholders' self-interest? Management World, 2015, (5): 147-159.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
