Zhang, Xiaoxiang, Filatotchev, Igor and Piesse, Jenifer (2011) Extraction of private benefits of control by families: tunnelling and trading in a private information environment. Cass Business School EMG conference, London, 2011. Published in: Cass Business School EMG conference.

PDF - Accepted Version Download (254kB)

Abstract

Using a sample of Hong Kong listed companies we investigate how private benefits of control are extracted by a family via tunnelling and trading in shares. We find that family ownership is associated with entrenchment/liquidity-using effects, leading to tunnelling and trading by families. Family board overrepresentation is associated with entrenchment/liquidity-restricting effects, facilitating tunnelling but limiting market scrutiny via informed trading. Family board leadership leads to monitoring/liquidity-promoting effects that prevent tunnelling and promote the price discovery process. These effects differ between founder and heir-families. Tunnelling and trading are two independent mechanisms of rent extraction even after controlling for endogeneity.

Item Type:	Conference Proceedings
Schools and Departments:	University of Sussex Business School > Accounting and Finance
SWORD Depositor:	Mx Elements Account
Depositing User:	Mx Elements Account
Date Deposited:	01 Mar 2022 09:27
Last Modified:	01 Mar 2022 09:29
URI:	http://sro.sussex.ac.uk/id/eprint/104639

View download statistics for this item

📧 Request an update