Taking the China Investor Protection Center (CIPC)—a "regulatory minority shareholder" in China's capital market—as the starting point, Professor Luo Jinhui, based on his latest research findings, conducted an in-depth discussion on the governance effect of CIPC’s shareholder rights exercise on the problems of "high valuation and high premium" in mergers and acquisitions (M&A) transactions of listed companies. Professor Luo pointed out that by exercising shareholder rights through means such as sending shareholder proposal letters and participating in media briefing sessions on asset restructuring, the CIPC has significantly increased the probability of using performance commitments in M&A transactions and effectively curbed the phenomenon of "precise performance target achievement" in such commitments, thereby providing an innovative solution for the protection of the rights and interests of minority investors. The research further reveals that the governance effect of the CIPC is particularly prominent in low-marketization environments, enterprises with high agency costs, and non-material asset restructuring cases. Through case analysis, Professor Luo also demonstrated the positive impact of CIPC’s rights exercise on extending the duration of performance commitments and improving post-merger operating performance, which provides important theoretical support for optimizing the modern capital market supervision system with Chinese characteristics.

During the Q&A session, teachers and students engaged in a lively discussion with Professor Luo on issues such as the rights exercise by the CIPC and the innovation of regulatory tools, creating a strong academic atmosphere on site.

Introduction of Lecturer

Luo Jinhui is a Professor and PhD Supervisor in the Department of Accounting, School of Management, Xiamen University, and the Chief Expert of Major Projects of the National Social Science Fund of China. He has been selected as a National High-end Accounting Talent (Academic Category) by the Ministry of Finance, a Provincial High-level Talent (Category A) in Fujian Province, and a Young Top Talent in the "Young Eagle Program" of Fujian Province. His main research and teaching work focuses on capital market financial accounting, corporate governance, and innovation and entrepreneurship of private enterprises. In recent years, he has published many papers in important domestic and foreign academic journals, including Management World, Journal of Management Sciences in China, China Industrial Economics, Journal of Financial Research, Accounting Research, Nankai Business Review, Journal of Corporate Finance (JCF), Journal of Banking & Finance (JBF), Journal of Applied Accounting Research (JAPP), Journal of Business Ethics (JBE), and Journal of Business Research (JBR). His policy advisory reports have been repeatedly adopted by the General Office of the Central Committee of the Communist Party of China, the General Office of the State Council, and the Ministry of Education, and have received positive instructions from central and state council leaders. He has won many honors and awards, such as the First-Class Award for Outstanding Scientific Research Achievements in Institutions of Higher Education by the Ministry of Education, the First-Class and Second-Class Awards for Outstanding Social Science Achievements in Fujian Province, the National Top 100 Excellent Management Cases, and the Young Teacher Award of the Fok Ying Tung Education Foundation. Currently, he has presided over and completed one Major Project of the National Social Science Fund and two projects of the National Natural Science Fund of China.

Written by/Liu Sihan, Tian Haowen Reviewed by/Jia Ming