Li, Kai; Wang, Tan; Cheung, Yan-Leung; Jiang, Ping - In: Review of Financial Studies 24 (2011) 7, pp. 2499-2525
We study the share privatization process in China to investigate whether and how the removal of market frictions is associated with efficiency gains. Prior to the reform, domestic A-shares were divided into tradable and non-tradable shares. As a result of the reform, holders of non-tradable...