Title: The deterrent effect of minority shareholder activism on tunnelling: the moderating roles of corporate social responsibility and governance quality

Authors: Jingwei Zhang; Sitraselvi Chandren; Redhwan Al-Dhamari

Addresses: Universiti Utara Malaysia (UUM), Sintok, Kedah, Malaysia; Jiangsu Vocational College of Finance and Economics, Huaian, Jiangsu, China ' Universiti Utara Malaysia (UUM), Sintok, Kedah, Malaysia ' Universiti Utara Malaysia (UUM), Sintok, Kedah, Malaysia

Abstract: The participation of minority shareholders in corporate decision-making is increasingly valued by scholars. However, in China, the ability of minority shareholders to actively participate in corporate affairs remains to be verified. To address the research gap in the effectiveness of minority shareholder activism (MSA), this study investigates the governance effect of MSA on controlling shareholders' tunnelling, and examines the moderating effects of corporate social responsibility (CSR) and governance quality, as well as the enhancing effect of the 2019 New Securities Law. Using a panel regression model, we find that MSA can significantly inhibit the tunnelling of controlling shareholders. Meanwhile, CSR and governance quality play a moderating role in this relationship. In addition, the New Securities Law in 2019 further strengthened the governance effectiveness of minority shareholders. This study constructs a 'law-governance' interaction framework and incorporating bottom-up governance mechanisms into agency theory, thereby extending its application in emerging markets.

Keywords: minority shareholder; corporate social responsibility; CSR; governance quality.

DOI: 10.1504/IJCG.2026.153493

International Journal of Corporate Governance, 2026 Vol.16 No.2, pp.188 - 213

Received: 18 Aug 2025
Accepted: 18 Jan 2026
Published online: 11 May 2026 *

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