英语翻译Friedman et al.,(2003)’s model provides us fundamental u

英语翻译Friedman et al.,(2003)’s model provides us fundamental understanding of the nature of tunneling and propping.However,as also mentioned in their paper,direct empirical evidence of propping is lacking and there is no evidence of tunneling in their paper too.Continuing with their efforts,this paper tries to provide direct evidence for both tunneling and propping by studying connected transactions in China – a direct means for Chinese controlling shareholders to engage tunneling or propping.The uniqueness of the ownership structure of Chinese firms and the stock market regulations in China enable us to understand the timing and the size of tunneling and propping within the same firm,which is hard to observe and to be tested in other countries.