An Empirical Study on Investor Protection and Corporate Control Transfer in Chinese Securities Market

The study proposes an index for evaluating investor protection of listed companies in Chinese conditions based on Chinese legal system and practices of securities market,and empirically tests the relationship between investor protection and takeover of listed companies during 2002 to 2004.Our results show that the investor protection of companies with takeover is lower,the probability of takeover is negatively related to investor protection,takeover can improve the level of investor protection,and development of corporate control market take an important role in improving investor protection in China.