Institutional investors' corporate site visits and resource extraction : Evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)5211-5243
Journal / PublicationAccounting & Finance
Volume63
Issue number5
Online published25 May 2023
Publication statusPublished - Dec 2023

Abstract

This study examines the effect of corporate site visits on resource extraction. Taking advantage of China's mandatory disclosure of detailed investors' site visits information, we find that firms with more investors' site visits have lower levels of managerial private consumption and tunnelling. This association is more pronounced when the monitoring effect of corporate site visits is more efficient, and the agency problem is more severe. We utilise the two-stage least squares (2SLS) estimation approach to demonstrate the robustness of our results. Collectively, our findings highlight the external monitoring role of investors' site visits in reducing corporate agency conflicts. © 2023 Accounting and Finance Association of Australia and New Zealand.

Research Area(s)

  • Corporate governance, Corporate site visits, Information advantage, Monitoring effect, Resource extraction

Citation Format(s)

Institutional investors' corporate site visits and resource extraction: Evidence from China. / Deng, Minhang; Wang, Yunyi; Tian, Gaoliang et al.
In: Accounting & Finance, Vol. 63, No. 5, 12.2023, p. 5211-5243.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review