Ownership Structure and Corporate Governance among Chinese Securities Firms

摘要

This study examines the impact of corporate ownership structure on the board of directors of securities firms in China. Using a sample of 369 Chinese securities firms from 2003 to 2005, we find that securities firms that are owned by local governments and state-owned enterprises experience more managerial expropriation due to insider control, whereas such firms that are privately owned are more likely to suffer from block holder expropriation. We also find that privately held firms are more likely to hold board meetings frequently and form specialized committees than local government and state-owned enterprises, providing shareholders with more protection against managerial expropriation.