Share Pledges and Firm Value

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aut.relation.conferenceFinancial Markets and Corporate Governance Conferenceen_NZ
aut.researcherScott, Thomas
dc.contributor.authorLi, Men_NZ
dc.contributor.authorLiu, Cen_NZ
dc.contributor.authorScott, Ten_NZ
dc.date.accessioned2019-01-14T01:09:56Z
dc.date.available2019-01-14T01:09:56Z
dc.date.copyright2018-05-04en_NZ
dc.date.issued2018-05-04en_NZ
dc.description.abstractShare pledging occurs when investors use their shareholding as collateral to obtain personal loans. In China, the practice of share pledging has grown exponentially in recent years, with potentially significant impacts on non-pledging shareholders, especially given high agency conflicts between controlling and minority shareholders. We empirically examine the relationship between share pledges and firm value. Using a sample of pledges by major shareholders of listed Chinese firms from 2003 through 2015, we find a positive association between share pledging and firm value. This relationship is moderated by the presence of state ownership and higher ownership concentration. Overall, we provide empirical evidence on the impacts of share pledging in the Chinese capital markets, with our findings having significant implications for investors, managers, and regulators.
dc.identifier.citationManawatū Seminar Series 2018, Massey University, Manawatū Campus, GLB2.05, April 18, 2018, retrieved from: http://econfin.massey.ac.nz/school/documents/seminarseries/manawatu/Share%20Pledging.pdf
dc.identifier.urihttps://hdl.handle.net/10292/12150
dc.publisherMassey University
dc.relation.urihttp://econfin.massey.ac.nz/school/documents/seminarseries/manawatu/Share%20Pledging.pdf
dc.rightsNOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).
dc.rights.accessrightsOpenAccessen_NZ
dc.subjectPledging; Corporate Governance; Entrenchment
dc.titleShare Pledges and Firm Valueen_NZ
dc.typeConference Contribution
pubs.elements-id329921
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/Accounting
pubs.organisational-data/AUT/PBRF
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Accounting Department PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
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