Multiple Large Shareholders and Abnormal Stock Trading Halts
The frequent occurrence of stock market trading halts not only harms the interests of investors,but also restricts the internationalization of the Chinese A-share capital market.Based on a sample of Chinese A-share listed firms on the Shanghai and Shenzhen stock exchanges,this paper exam-ines the impact of multiple large shareholders(MLS)on abnormal stock trading halts.The results reveal that listed companies with MLS have a lower probability of abnormal stock trading halts.When non-controlling shareholders'number and share percentage increase,their inhibitory effect on abnormal stock trading halts is more significant.Channel tests suggest that MLS can restrain abnormal stock trading halts by reducing tunneling activities by control-ling shareholders,increasing the proportion of dissenting votes on the corporate boards,and improving corporate information disclosure quality.The impact of MLS on abnormal stock trading halts is more pronounced in firms with lower-quality internal controls and information transparency.This paper extends the research on the governance impact of MLS,and has important insights for improving the stock trading halts system of the Chinese capital market.
Multiple Large ShareholdersStock Trading HaltsInternal ControlInformation TransparencyCorporate Governance