Controlling shareholder equity pledging, financing constraints, and corporate social responsibility

Jing Xu and Qianfang Luo

Finance Research Letters, 2025, vol. 76, issue C

Abstract: This study investigates the intrinsic relationship between controlling shareholders’ equity pledges, financing constraints, and corporate social responsibility (CSR) using a sample of A-share listed companies from 2010 to 2020. The results indicate that equity pledges significantly exacerbate financing constraints, thereby weakening a firm's ability to fulfill its CSR obligations. Moreover, executive compensation incentives can partially alleviate the negative impact of equity pledges on CSR performance. Further analysis reveals that the effects of controlling shareholders’ equity pledges vary depending on industry type and the quality of internal controls.

Keywords: Controlling shareholder equity pledging; Financing constraints; Corporate social responsibility (search for similar items in EconPapers)
JEL-codes: D22 G32 G34 M14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002600

DOI: 10.1016/j.frl.2025.106996

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