Controlling shareholder's equity pledge and corporate financialization

Zhongliang Tian, Ruoyuan Tang, Wenhe Liu and Yuan Qi

Finance Research Letters, 2024, vol. 60, issue C

Abstract: This paper selects China's A-share listed firms from 2011 to 2022 as a research sample to investigate whether the equity pledge behavior of controlling shareholders of listed firms has an impact on the financialization of firms. The study finds that equity pledges exacerbate the financialization of firms; investor sentiment plays a mediating role in the impact of controlling shareholders' equity pledges on firms' financialization behavior; and the correlation between controlling shareholders' equity pledges and firms' financialization is more significant in firms with lower financing constraints than in firms with higher financing constraints.

Keywords: Controlling shareholders' equity pledge; Investor sentiment; Financialization (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323012941
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:60:y:2024:i:c:s1544612323012941

DOI: 10.1016/j.frl.2023.104922

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 ().