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Article: The role of institutional investors in Chinese corporate governance.(A RESEARCH NOTE)(Report)
- Article from:
- China: An International Journal
- Article date:
- March 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 East Asian Institute, National University of Singapore. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In much of the literature, there are arguments about whether institutional investors are able to take part in corporate governance and improve corporate performance. A large number of studies suggest that institutional investors play a positive role in corporate governance. The rationale is that due to the high cost of monitoring, only large shareholders such as institutional investors can achieve sufficient benefits from it. (1) Shleifer and Vishny observe that institutional investors by virtue of their large stockholdings have greater incentive to monitor corporate performance since they have greater expected benefits of monitoring. (2) McConnell and Servaes, and Del ...