Controlling SHAreholder's Equity Pledge and Share Repurchase Preview

JiaNi Xie () and LiMei Cao
Additional contact information
JiaNi Xie: Guangdong University of Finance &Economics, Department of Accounting
LiMei Cao: Guangdong University of Finance &Economics, Department of Accounting

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 1330-1339 from Springer

Abstract: Abstract With the growth of equity pledge scale, enterprises are constantly exploring risk resolution methods. After the revision of the company law in 2018, the conditions for share repurchase were gradually relaxed, and the number of listed companies announcing the implementation of share repurchase increased rapidly. The pledge of controlling shareholders' equity will not only change the behavior of controlling shareholders, but also affect the share repurchase behavior of listed companies.This paper uses controlling shareholders' equity pledges as a perspective to explore whether the demands of major shareholders to maintain the security of control of listed companies in China affect the probability of listed companies to issue share repurchase forecasts. Using Chinese A-share listed companies from 2012 to 2019 as a sample, the conclusions of this paper are as follows: controlling shareholder equity pledges significantly increase the probability of listed companies issuing share repurchase forecasts, and that the above relationship is affected by the quality of company information disclosure and power balance with shareholder structure.

Keywords: Equity Pledge; Share Repurchase Forecast; DIsclosure Quality.; Power Balance with Shareholder Structure (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6463-036-7_196

Ordering information: This item can be ordered from
http://www.springer.com/9789464630367

DOI: 10.2991/978-94-6463-036-7_196

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().