Controlling shareholder pledging and corporate ESG behavior

Wei Huang, Yan Luo, Xiaohuan Wang and Lifu Xiao

Research in International Business and Finance, 2022, vol. 61, issue C

Abstract: Utilizing a large sample of Chinese listed firms, we document strong and robust evidence that both firms’ environmental, social, and governance (ESG) performance and their ESG disclosure quality deteriorate significantly after controlling shareholders’ pledging of their shares for personal loans. The results are especially evident among firms with higher valuation uncertainty, such as small firms and high-tech firms. Lastly, we show that external monitoring by institutional investors helps to mitigate such adverse impacts of controlling shareholder pledging.

Keywords: ESG; Controlling shareholder pledging; Chinese A-share stock markets (search for similar items in EconPapers)
JEL-codes: G23 G32 G34 M14 Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531922000435
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:riibaf:v:61:y:2022:i:c:s0275531922000435

DOI: 10.1016/j.ribaf.2022.101655

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

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