Transformations  in
Business & Economics

DOES "ONE BELT, ONE ROAD" IMPROVE CORPORATE GOVERNANCE? A PERSPECTIVE FROM FUNDS AND QFII
Yan Liu, Yawen Han, Huanhuan Xie

ABSTRACT. The economic consequences of China's "One Belt, One Road" Initiative have attracted much attention. This study takes OBOR Initiative as a quasi-natural experiment to investigate the impact of OBOR Initiative on the governance structure of companies, based on the data of listed companies on the main board of the China Shenzhen Stock Exchange from 2011 to 2018. We find OBOR Initiative significantly improves the corporate governance of the companies belonging to the OBOR concept sector. Moreover, OBOR Initiative improves the corporate governance of the companies mainly through the entry and shareholding ratio of funds, and the shareholding ratio of QFII from Hong Kong and America. Compared with non-state-owned enterprises, OBOR Initiative significantly improves the governance structure of state-owned enterprises. The findings of this study provide corresponding policy recommendations for the government to improve the economic benefits of OBOR Initiative.

KEYWORDS:  OBOR Initiative, corporate governance, fund, QFII, DID.

JEL classification:  E61, G29, G34.