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The influence mechanism of controlling shareholders' equity pledges on corporate risk-taking

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  • Guo, Qin
  • Zhao, Yuanping

Abstract

This paper employs China's A-share listed companies from 2012 to 2023 as the research sample to examine the impact of controlling shareholders' equity pledge behavior on corporate risk-taking. It also tests the moderating role of the threat of share withdrawal by non-controlling major shareholders. The findings reveal that controlling shareholders' equity pledges result in lower levels of corporate risk-taking. Further analysis indicates that the threat of withdrawal by non-controlling major shareholders mitigates the negative correlation between controlling shareholders' equity pledges and corporate risk-taking. Additionally, we discover that the quality of disclosure has a mediating effect in controlling shareholders' equity pledges, which reduces corporate risk-taking.

Suggested Citation

  • Guo, Qin & Zhao, Yuanping, 2025. "The influence mechanism of controlling shareholders' equity pledges on corporate risk-taking," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008232
    DOI: 10.1016/j.frl.2025.107564
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    References listed on IDEAS

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