Can a not-for-profit minority institutional shareholder impede stock price crash risk: Evidence from China

The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

“…In companies with larger boards of directors, there may sometimes be less control and oversight of management activities because there is a lack of motivation and consensus on decisions among members (Constantatos 2018). Dispersal of responsibility and the incidence of the 'free-rider' are other challenges firms with larger board sizes are encountering (Van den Berghe and Levrau 2004;Uchida 2011;Sanan 2019;Hu et al 2022b). Experience has also shown that there are generally more disagreements and conflicts among the board members of larger companies in low-income markets (Bhattrai 2017;El-Chaarani et al 2022).…”

How Does a Regulatory Minority Shareholder Influence the ESG Performance? A Quasi-Natural Experiment

“…Analysts' attention, external auditing quality, institutional shareholding, and highly-developed market intermediary and legal system can strengthen the effect of CSISC shareholding on corporate ESG performance. On the basis of previous research [5,7,17], although CSISC is a minority shareholder for companies, its policy and regulatory characteristics make its role different from that of ordinary minority shareholders, which is of special significance for corporate governance and investor protection. Hence, our paper determined a positive relationship between the CSISC and the corporate ESG rating.…”

“…From the perspective of investor protection policy, the online voting measures of listed companies in 2014 can enable minority shareholders to improve corporate social responsibility performance through internal control and increasing corporate transparency [9]. Although CSISC is a minority shareholder for companies, its policy and regulatory characteristics make its role different from that of ordinary minority shareholders, which is of special significance for corporate governance and investor protection [5,7,17]. So, our paper focuses on the relationship between the CSISC, as an institution of investor protection, and corporate social performance and ESG rating.…”

“…The existing research exploring the impact of CSISC on the capital market is relatively limited, mainly focusing on the economic consequences of its establishment. CSISC shareholding encourages minority shareholders' activism and plays a role in protecting the rights and interests of minority shareholders; therefore, the pilot reform of CSISC shareholding can significantly reduce the stock price crash risks, promote the smooth operation of the financial market [7], reduce earnings management, and improve earnings quality [5]. Based on the existing literature, this paper further focused on how CSISC can improve the long-term sustainability performance of companies, which means the impact on ESG performance.…”

“…Firstly, it contributes to the literature on minority shareholder protection and investigates the economic consequences of CSISC shareholding. Current research mainly focuses on the impact of CSISC shareholding on the short-term economic behavior of companies, including stock price crash risks [7] and earnings management [5]. However, only by improving the long-term value and focusing on the long-term sustainable development of listed companies can the investment value of minority shareholders be truly enhanced and their interests protected.…”