The Study of Tunneling in China's Listed Companies——Evidence from the Non-Tradable Shares Transfer and Restricted Shares Transfer

Based on the sample of the non-tradable shares transfer and restricted shares transfer, the paper analyzes the tunneling before and after the non-tradable share reform. It finds that, to the sample of the non-tradable shares transfer, control right, institution share, board size, audit opinion and earnings per share can aggravates tunneling; control right property, law level and return on total assets ratio can restrain tunneling. To the sample of the restricted shares transfer, control right, separation of ownership and control rights, control right property, return on total assets ratio and asset-liability ratio can exacerbate tunneling. But ownership right, institution share, board size, audit opinion and earnings per share can reduce tunneling. Besides, non-tradable share reform can weaken and explain tunneling to some extent.