How Do Chinese Shareholders Exercise Their Rights to Vote? A Preliminary Empirical Study

Chao Xi, Sirui Han, Ning Cao, and Haochuan Gong, "How Do Chinese Shareholders Exercise Their Rights to Vote? A Preliminary Empirical Study" in Guo Wenying (ed.) The Investors [Touzi Zhe] (2021) Volume 13, pp. 17 – 37 (in Chinese).

The Chinese University of Hong Kong Faculty of Law Research Paper No. 2021-64

30 Pages Posted: 23 Nov 2021

See all articles by Chao Xi

Chao Xi

The Chinese University of Hong Kong

Sirui Han

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Ning Cao

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Haochuan Gong

Jilin university

Date Written: January 31, 2020

Abstract

We conduct a preliminary empirical study on the shareholders’ exercise of their rights in China’s A-share stock markets. Our focus is on shareholders’ attendance of the general meeting and their exercise of voting rights. We empirically show that the ownership form, concentration of shareholding, firm’s profitability, and the firm size have a statistically significant impact on investors’ attendance and voting behaviour. Our case studies further demonstrate that the majority of the minority rule and the presence of long-term investors both incentivise public investors’ exercise of rights. We also critically examine the role of the China Securities Investor Services Centre, a PRC public investor protection body.

The Article is published in Guo Wenying (ed.) The Investors [Touzi Zhe] (2021) Volume 13, pp. 17 – 37 (in Chinese).

Keywords: Investor protection, Shareholder rights, China's stock market, Shareholder general meeting, Shareholder litigation, Securities law

JEL Classification: K22, K41, K42

Suggested Citation

Xi, Chao and Han, Sirui and Cao, Ning and Gong, Haochuan, How Do Chinese Shareholders Exercise Their Rights to Vote? A Preliminary Empirical Study (January 31, 2020). Chao Xi, Sirui Han, Ning Cao, and Haochuan Gong, "How Do Chinese Shareholders Exercise Their Rights to Vote? A Preliminary Empirical Study" in Guo Wenying (ed.) The Investors [Touzi Zhe] (2021) Volume 13, pp. 17 – 37 (in Chinese)., The Chinese University of Hong Kong Faculty of Law Research Paper No. 2021-64, Available at SSRN: https://ssrn.com/abstract=3969094

Chao Xi (Contact Author)

The Chinese University of Hong Kong ( email )

Hong Kong
+ 852 2696 1142 (Phone)
+ 852 2994 2505 (Fax)

Sirui Han

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Hong Kong

Ning Cao

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Kowloon, Sha Tin
Hong Kong

Haochuan Gong

Jilin university

China

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