Performance and risk of energy industrial firms with stock pledge in China

Zaiwen Ni, Libing Fang, Haiyue Liu and Xinyu Lu

Finance Research Letters, 2022, vol. 46, issue PB

Abstract: We investigate the effect of stock pledges on the firms' performance and risk in energy industry of China. The results show that the performance of firms decreases in the existence of stock pledge. Stock pledge generally decreases stock return volatility, except for the increase in forced liquidation pressure. Stock pledge increases downside risk and crashes. Finally, we demonstrate the different effects of the stock pledge in various regions of China.

Keywords: Stock pledge; Energy industry; Market risk; Firm performance (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612321004049
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004049

DOI: 10.1016/j.frl.2021.102410

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().