The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics

Limited literature investigates voluntary delisting issues in the context of China, even though China is the second-largest economy in the world. This study aims to investigate the influence of internal corporate governance（i.e., board size, board independence, CEO duality, institutional ownership,...

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Main Author:	Xiaomei, Zhang
Format:	Thesis
Language:	eng eng eng
Published:	2023
Subjects:	HD4801-8943 Labor Work Working Class
Online Access:	https://etd.uum.edu.my/10980/1/depositpermission-903193.pdf https://etd.uum.edu.my/10980/2/s903193_01.pdf https://etd.uum.edu.my/10980/3/s903193_02.pdf
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id	my-uum-etd.10980
record_format	uketd_dc
spelling	my-uum-etd.109802024-02-20T01:14:21Z The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics 2023 Xiaomei, Zhang Salehuddin, Mohd Rashdan School of Business Management School of Business Management HD4801-8943 Labor. Work. Working Class Limited literature investigates voluntary delisting issues in the context of China, even though China is the second-largest economy in the world. This study aims to investigate the influence of internal corporate governance（i.e., board size, board independence, CEO duality, institutional ownership, insider ownership) and external corporate governance (i.e., lead security trader, external auditor) on voluntary delisting. It also investigates the moderating effect of the top management team (TMT) demographic characteristics (i.e., TMT average age, TMT average education level, TMT political background) on the relationship between internal corporate governance and voluntary delisting. The study employed the Agency theory as the underpinning theory with two supporting theories: CBA theory and Upper Echelons theory. The data is collected from China’s New Third Board Market. It is an out-to-counter stock market that has had a large number of delisting firms recently. The sample includes 1045 delisted firms as a test group and 1388 remaining listed firms as the control group over the year from 2014 to 2019. Logistic regression and hierarchical regression analysis are used to achieve the research objectives. The findings show that board independence, institutional ownership, and insider ownership are significantly and negatively related to voluntary delisting. However, CEO duality, lead security trader, and external auditor are significantly and positively associated with voluntary delisting. Thus, good corporate governance could mitigate the likelihood of a firm voluntarily delisting. Furthermore, the results show that TMT demographic characteristics affect the relationship between internal corporate governance and voluntary delisting. Therefore, the contribution of this study includes expanding the application of the Upper Echelons theory in delisting literature, providing new evidence for the delisting empirical research, and offering suggestions for regulators of China’s capital market, investors, and the NTBM-listed firms’ management. 2023 Thesis https://etd.uum.edu.my/10980/ https://etd.uum.edu.my/10980/1/depositpermission-903193.pdf text eng staffonly https://etd.uum.edu.my/10980/2/s903193_01.pdf text eng 2025-11-01 staffonly https://etd.uum.edu.my/10980/3/s903193_02.pdf text eng staffonly phd doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Salehuddin, Mohd Rashdan
topic	HD4801-8943 Labor Work Working Class
spellingShingle	HD4801-8943 Labor Work Working Class Xiaomei, Zhang The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
description	Limited literature investigates voluntary delisting issues in the context of China, even though China is the second-largest economy in the world. This study aims to investigate the influence of internal corporate governance（i.e., board size, board independence, CEO duality, institutional ownership, insider ownership) and external corporate governance (i.e., lead security trader, external auditor) on voluntary delisting. It also investigates the moderating effect of the top management team (TMT) demographic characteristics (i.e., TMT average age, TMT average education level, TMT political background) on the relationship between internal corporate governance and voluntary delisting. The study employed the Agency theory as the underpinning theory with two supporting theories: CBA theory and Upper Echelons theory. The data is collected from China’s New Third Board Market. It is an out-to-counter stock market that has had a large number of delisting firms recently. The sample includes 1045 delisted firms as a test group and 1388 remaining listed firms as the control group over the year from 2014 to 2019. Logistic regression and hierarchical regression analysis are used to achieve the research objectives. The findings show that board independence, institutional ownership, and insider ownership are significantly and negatively related to voluntary delisting. However, CEO duality, lead security trader, and external auditor are significantly and positively associated with voluntary delisting. Thus, good corporate governance could mitigate the likelihood of a firm voluntarily delisting. Furthermore, the results show that TMT demographic characteristics affect the relationship between internal corporate governance and voluntary delisting. Therefore, the contribution of this study includes expanding the application of the Upper Echelons theory in delisting literature, providing new evidence for the delisting empirical research, and offering suggestions for regulators of China’s capital market, investors, and the NTBM-listed firms’ management.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Xiaomei, Zhang
author_facet	Xiaomei, Zhang
author_sort	Xiaomei, Zhang
title	The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
title_short	The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
title_full	The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
title_fullStr	The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
title_full_unstemmed	The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics
title_sort	effect of corporate governance on voluntary delisting in china: the moderating role of top management team demographic characteristics
granting_institution	Universiti Utara Malaysia
granting_department	School of Business Management
publishDate	2023
url	https://etd.uum.edu.my/10980/1/depositpermission-903193.pdf https://etd.uum.edu.my/10980/2/s903193_01.pdf https://etd.uum.edu.my/10980/3/s903193_02.pdf
_version_	1794023802589413376

The effect of corporate governance on voluntary delisting in China: The moderating role of top management team demographic characteristics

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