Online Voting System And The Protection Of Minority Shareholders

In December 2004,the CSRC issued the "Several Provisions on Strengthening the Protection of the Rights and Interests of Public Shareholders",encouraging listed companies to actively open online voting to investors when convening a general meeting.Then,does the listed company's opening of online voting system significantly increase the enthusiasm of minority shareholders?In the shareholders meeting,will institutional investors actively participate in corporate governance?After the above regulation is issued,is it possible to reduce the number of cases where internals submit proposals to the shareholders'meeting that are detrimental to minority investors?Choosing the data of Shenzhen Stock Exchange listed companies in 2004-2006,this paper attempts to answer the above three questions in an empirical way.The outcomes shows are as follows:First,online voting has increased the enthusiasm of minority shareholders to participate in the shareholders'meeting.If a listed company provides an online voting system to investors,the participation rate and voting rate and vetoing rate of minority shareholders will increase.Second,institutional investors have enhanced the relationship between online voting and the enthusiasm of minority shareholders.Third,after the issuance of the regulations,the insiders of the company will reduce the proposal to submit to the shareholders meeting that it is harmful to small and medium investors.In the further examination,this paper examines the regulation and CAR.The study found that CAR in the post-regulation is higher than before,which indicates that the online voting regulations can promote the healthy development of China's capital market and enhance the protection of small and medium investors.But online voting also has some limitations.The significance of this paper is to prove that online voting can improve corporate governance and provide methods for future research on the relevant policies.