Cultural Origin and Minority Shareholder Expropriation: Historical Evidence

• DOI: 10.1111/1475-679x.12517
• Publication Date: 2023-10-25T14:34:51Z
• Authors: ZHIHUI GU; WEI SUN; FRANK S. ZHOU
• Keywords: Expropriation

ABSTRACT Can culture explain regional differences in minority shareholder expropriation? Examining variation China, we document that the influence of historical Confucian values persists, despite decades political movements clamping down on these values, and reduce expropriation local public firms. The effect expropriation, part, operates through establishment oversight mechanisms (i.e., greater financial reporting quality dividend payouts) constrain expropriation. findings have important implications for understanding origins enduring capital market development.