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
Date Written: January 31, 2020
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: Suggested Citation