Proceedings of the 2022 2nd International Conference on Public Management and Intelligent Society (PMIS 2022)

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The Share-Pledging of Controlling Shareholder and Corporate Operation Risk

The Empirical Evidence from China's A-Shares Listed Companies

Authors
Ping Yu1, Youyi Wu2, Jiarui Zhang3, Yuanhai Bai4, *
1Tianhua College, Shanghai Normal University, No. 1661 Shengxin North Road, Shanghai, China
2The University of Chicago, Chicago, 60611, USA
3School of Economics and Management, Tongji University, No. 1239 Siping Road, Shanghai, China
4School of Economics, Guangxi University, No. 100 Daxue East Road, Nanning, Guangxi, China
*Corresponding author. Email: Yuanhai_Bai@163.com
Corresponding Author
Yuanhai Bai
Available Online 7 December 2022.
DOI
10.2991/978-94-6463-016-9_77How to use a DOI?
Keywords
Controlling shareholder; Share-pledging; Operation risk; Nature of property rights
Abstract

Share-pledging has become a widely used financing method for listed companies to meet their capital needs. However, it may also influence the operation risk of companies. Using the annual data from CSMAR and WIND database, we obtain 11,298 listed companies from 2009 to 2019 and examine the impact of controlling shareholder's share-pledging on corporate operation risk. Through Stata16.0, we regress and empirically find that, the share-pledging of controlling shareholder can significantly increase the corporate operation risk based on the double fixed effect model. Furthermore, after considering the different nature of property rights in listed companies, we prove that controlling shareholders' share-pledging has more significantly positive influence on the corporate operation risk in non-SOEs than in SOEs. Our findings can remind listed companies to take reasonable financing means and help regulators formulate policies to protect the rights and interests of minority shareholders.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Public Management and Intelligent Society (PMIS 2022)
Series
Atlantis Highlights in Computer Sciences
Publication Date
7 December 2022
ISBN
978-94-6463-016-9
ISSN
2589-4900
DOI
10.2991/978-94-6463-016-9_77How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ping Yu
AU  - Youyi Wu
AU  - Jiarui Zhang
AU  - Yuanhai Bai
PY  - 2022
DA  - 2022/12/07
TI  - The Share-Pledging of Controlling Shareholder and Corporate Operation Risk
BT  - Proceedings of the 2022 2nd International Conference on Public Management and Intelligent Society (PMIS 2022)
PB  - Atlantis Press
SP  - 766
EP  - 778
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-016-9_77
DO  - 10.2991/978-94-6463-016-9_77
ID  - Yu2022
ER  -