Is China's Securities Regulatory Agency a Toothless Tiger? Evidence from Enforcement Actions
The China Securities Regulatory Commission (CSRC) is the regulatory body that enforces securities laws and regulations in the People's Republic of China. Somewhat akin to the SEC in the U.S., the CSRC carries out investigations to identify and prosecute securities fraud. The aim of this study is to provide some empirical evidence on the impact of the CSRC's enforcement actions. We find that enforcement actions have a negative impact on stock prices with most firms suffering wealth losses of around 1% to 2% in the five days surrounding the event. Moreover, we find that firms have a greater rate of auditor change, a much higher incidence of qualified audit opinions, increased CEO turnover, and wider bid-ask spreads. The negative stock returns and the costly economic consequences for firms suggests the CSRC has credibility and its actions have teeth
Year of publication: |
[2005]
|
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Authors: | Firth, Michael |
Other Persons: | Chen, Gong-meng (contributor) ; Gao, Ning Daniel (contributor) ; Rui, Oliver M. (contributor) |
Publisher: |
[2005]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (53 p) |
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Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 2005 erstellt |
Other identifiers: | 10.2139/ssrn.711107 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012736505
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