Equity pledge and debt financing of listed companies

Jing Hu, Lejia Zhong and Jingyuan Qiao

Finance Research Letters, 2024, vol. 59, issue C

Abstract: This paper selects the relevant data of listed companies from 2015 to 2021 to study the relationship and influence mechanism between equity pledge behavior and debt financing cost of listed companies. It is found that controlling shareholders' equity pledge behavior affects the debt financing cost of listed companies, which makes the financing cost of listed companies increase; equity pledge mainly affects the debt financing cost through the two paths of control transfer risk and information disclosure quality, which makes the debt financing cost increase, and the profit appropriation motive does not constitute the path of equity pledge affecting the debt financing cost.

Keywords: Equity pledge; Debt financing cost; Separation of rights; Earnings management (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011431

DOI: 10.1016/j.frl.2023.104771

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