The Nontradable Share Reform in the Chinese Stock Market

Andrea Beltratti · Bernardo Bortolotti

44 citations0/0 files storedRePEc: Research Papers in Economics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Financial Markets and Investment Strategies Finance, Markets, and Regulation

Abstract

Nontradable shares (NTS) are an unparalleled feature of the ownership structure of Chinese listed companies and represented a major hurdle to domestic financial market development. After some failed attempts, in 2005 the Chinese authorities have launched a structural reform program aiming at eliminating NTS. In this paper, we evaluate the stock price effects of the actual implementation of this reform in 368 firms. The NTS reform generated a statistically significant 8 percent positive abnormal return over the event window, adjusting prices for the compensation requested by tradable shareholders. Results are consistent with the expectation of improved economic fundamentals such as better corporate governance and enhanced liquidity.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 44 citations exist upstream.

References

2002Illiquidity and stock returns: cross-section and time-series effects 1985Bid, ask and transaction prices in a specialist market with heterogeneously informed traders 2012The Econometrics of Financial Markets 2002The ultimate ownership of Western European corporations 1997New Evidence on Stock Price Effects Associated with Changes in the S&P 500 Index 2001Exposure and Markups 1984A Comparison of Alternative Testing Methodologies Used in Capital Market Research 2001Discounts on Illiquid Stocks: Evidence from China

Cited by

2009A Review of China’s Financial System and Initiatives for the Future 2012Trading on inside information: Evidence from the share-structure reform in China 2014Controlling shareholders’ incentives and executive pay-for-performance sensitivity: Evidence from the split share structure reform in China 2014China's Financial System and the Law *2012CEO Compensation and Corporate Governance in China 2012

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.