Are the Chinese Listed Firms Expropriated by The Controlling Shareholders in Asset and Share Acquisitions?

摘要

From the angle that tunneling in assets or shares acquisitions is in fact that the controlling shareholders transfer resources from purchasers to bargainors inside groups, We compare the performance change of listed firms that acquire assets or shares inside groups with that of listed firms that acquire assets or shares outside groups and find the former is significantly worse than the latter. Besides, we examine the stock price changes of purchasers and responding bargainors when the acquisitions occur and find that among acquisitions inside groups while the stock price of purchasers decrease significantly , the stock price of bargainors increase significantly ,but among acquisitions outside groups the stock prices of purchasers and responding bargainors do not change significantly. These suggest that there exist in the controlling shareholders expropriate the listed firms by the assets and shares acquisitions inside groups in China.