Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/24937
Title: A corporate governance explanation of the A-B share discount in China
Authors: Tong, WHS 
Yu, WW
Keywords: A-B Share discount
Corporate governance
Investor base
Valuation
Issue Date: 2012
Publisher: Pergamon Press
Source: Journal of international money and finance, 2012, v. 31, no. 2, p. 125-147 How to cite?
Journal: Journal of international money and finance 
Abstract: B-shares listed in China are traded at substantial discounts to their corresponding A-shares although they have identical rights. We offer a governance explanation and suggest that relative to domestic investors, foreign investors care more about a firm's governance quality. Results are supportive, as the B-share price discount is higher for firms that have weaker governance characterized by 1) higher ownership concentration, 2) ineffective boards with a higher proportion of directors appointed by the parent company, 3) lower dividend payouts, and 4) higher levels of information asymmetry.
URI: http://hdl.handle.net/10397/24937
ISSN: 0261-5606
EISSN: 1873-0639
DOI: 10.1016/j.jimonfin.2011.09.006
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