Does the Ownership-split Reform Improve the Effectiveness of Corporate Governance of Chinese Listed Firms?

This paper empirically examines whether the Ownership-split Reform(OSR) improve the effectiveness of corporate governance mechanisms of fisted firms in China,and therefore evaluates the policy effectiveness of the reform.The study indicates that the OSR significantly improves the effectiveness of corporate governance mechanisms of Chinese listed firms and it achieves such a goal via improving the monitoring effectiveness of both controlling shareholders and the other active institutional investors.The reform in non-state-owned firms has more significant impact on corporate governance than that in state-owned firms.Thus,these findings suggest that,to a certain extent,the OSR achieves the goal of improving corporate governance of China's listed firms.