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Stock liquidity and controlling shareholders' encroachment of private interests: Evidence from China

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  • He, Xiqiong
  • Gu, Xiang
  • Liu, Hao

Abstract

This paper investigated the effects of stock liquidity on controlling shareholders’ encroachment of private interests. It showed that stock liquidity positively affects controlling shareholders’ encroachment of private interests in China's listed companies. Further, institutional investor ownership and stock price crash risk have a mediating effect on stock liquidity toward controlling shareholders’ encroachment of private interests, respectively. This research strives to provide valuable insights for management to strengthen stock liquidity assessment and improve corporate governance.

Suggested Citation

  • He, Xiqiong & Gu, Xiang & Liu, Hao, 2023. "Stock liquidity and controlling shareholders' encroachment of private interests: Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323004920
    DOI: 10.1016/j.frl.2023.104120
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    References listed on IDEAS

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