Chinese Fund Manager's Stock Holding Preference

This paper uses Chinese listed forms from 1998 to 2003 as sample. It empirically analyzes the impact of corporate governance mechanisms on Chinese fund manager's stock holding preference. After we control for accounting index and stock characteristics, we find that corporate governance mechanisms such as information disclosure and investor protection have significant impact on fund manager's holding preference. This paper extends the cross-country study of Aggarwal et al. (2005). It provides empirical evidence of how corporate governance mechanisms influence institutional investor's preference in stock holding in underdeveloped legal environment.