Abstract
This article investigates the impact of medium and small shareholders' online voting on idiosyncratic volatility based on the data of all A-share listed companies in China from 2008-2021. The regression analysis finds that minority shareholders' network voting can significantly increase stock price idiosyncratic volatility. Second, this paper performs robustness tests in the form of replacement of explanatory variables, PSM tests, and excluding sample of significant event shocks, and the results show that the aforementioned findings remain valid. Additionally, the results of the mechanism test indicate that minority shareholders' voting enhances the level of stock price idiosyncratic volatility by improving information transparency. The heterogeneity results suggest that minority shareholder voting will significantly enhance share price idiosyncratic volatility for firms with stronger external monitoring power through Big four audit oversight. The paper provides new empirical evidence on the theoretical mechanism of minority shareholder network governance in influencing share price idiosyncratic volatility and provides a policy basis for the government to improve minority shareholder network voting.
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