EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY
Equity pledging is susceptible to agency problems and substantial risk, resulting in inefficient corporate investment. We show the negative impact is not just induced by controlling shareholders but also pledged by non-controlling shareholders and actual controllers. Our results add that SOEs with...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Tuwhera Open Access Publisher
2023-05-01
|
| Series: | Applied Finance Letters |
| Online Access: | https://ojs.aut.ac.nz/applied-finance-letters/article/view/616 |
| _version_ | 1797825597909499904 |
|---|---|
| author | Karren Lee-Hwei Khaw Jiaying Chen Muhammad Awais Gulzar Ahmad Hakimi Tajuddin |
| author_facet | Karren Lee-Hwei Khaw Jiaying Chen Muhammad Awais Gulzar Ahmad Hakimi Tajuddin |
| author_sort | Karren Lee-Hwei Khaw |
| collection | DOAJ |
| description |
Equity pledging is susceptible to agency problems and substantial risk, resulting in inefficient corporate investment. We show the negative impact is not just induced by controlling shareholders but also pledged by non-controlling shareholders and actual controllers. Our results add that SOEs with control rights via controlling shareholders or actual controllers can mitigate investment inefficiency problems. We conclude that pledgor type matters and the impact of non-controlling shareholders’ pledges should not be neglected.
|
| first_indexed | 2024-03-13T10:56:18Z |
| format | Article |
| id | doaj.art-67a92736a79c4eba849c8411bf005f05 |
| institution | Directory Open Access Journal |
| issn | 2253-5799 2253-5802 |
| language | English |
| last_indexed | 2024-03-13T10:56:18Z |
| publishDate | 2023-05-01 |
| publisher | Tuwhera Open Access Publisher |
| record_format | Article |
| series | Applied Finance Letters |
| spelling | doaj.art-67a92736a79c4eba849c8411bf005f052023-05-17T03:25:49ZengTuwhera Open Access PublisherApplied Finance Letters2253-57992253-58022023-05-0112110.24135/afl.v12i1.616EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCYKarren Lee-Hwei Khaw0Jiaying ChenMuhammad Awais GulzarAhmad Hakimi TajuddinUniversity of Waikato Equity pledging is susceptible to agency problems and substantial risk, resulting in inefficient corporate investment. We show the negative impact is not just induced by controlling shareholders but also pledged by non-controlling shareholders and actual controllers. Our results add that SOEs with control rights via controlling shareholders or actual controllers can mitigate investment inefficiency problems. We conclude that pledgor type matters and the impact of non-controlling shareholders’ pledges should not be neglected. https://ojs.aut.ac.nz/applied-finance-letters/article/view/616 |
| spellingShingle | Karren Lee-Hwei Khaw Jiaying Chen Muhammad Awais Gulzar Ahmad Hakimi Tajuddin EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY Applied Finance Letters |
| title | EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY |
| title_full | EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY |
| title_fullStr | EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY |
| title_full_unstemmed | EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY |
| title_short | EQUITY PLEDGE, PLEDGOR TYPE AND INVESTMENT EFFICIENCY |
| title_sort | equity pledge pledgor type and investment efficiency |
| url | https://ojs.aut.ac.nz/applied-finance-letters/article/view/616 |
| work_keys_str_mv | AT karrenleehweikhaw equitypledgepledgortypeandinvestmentefficiency AT jiayingchen equitypledgepledgortypeandinvestmentefficiency AT muhammadawaisgulzar equitypledgepledgortypeandinvestmentefficiency AT ahmadhakimitajuddin equitypledgepledgortypeandinvestmentefficiency |