Notice of RetractionAn Analysis of Medium and Long-Term Effects of QFII System on Corporate Governance: Evidence from PLCs on China´s Capital Market

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

QFII system is the most important institutional arrangement since China´s access to the WTO in 2001.By borrowing experiences from other emerging capital markets, the paper discusses the impacts of QFII system on domestic PLCs´ corporate governance in the medium and long run. These impacts consist of the positive roles of QFIIs in corporate valuation, the requirements of financial disclosure and the promotion of voluntary disclosure. The paper holds that the implementation of QFII system will accelerate diversification of China´s state-owned companies´ equity structure and then improve domestic PLCs´ corporate governance. But the improvement will be slow owing to relative strict restraints in free in-and-out of the capital market.