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Controlling shareholders' equity pledge, litigation risk and corporate ESG performance

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  • Wang, Muyun
  • Zhang, Ying

Abstract

Based on the sample data of Chinese listed companies, this paper investigates the relationship between controlling shareholders' equity pledges, litigation risk and corporate ESG performance and draws the following empirical conclusions: controlling shareholders' equity pledge increases corporate litigation risk; controlling shareholders' equity pledge negatively affects corporate EGS performance; litigation risk negatively affects EGS performance; and corporate litigation risk plays a positive moderating role in the relationship between controlling shareholders' equity pledge and ESG performance.

Suggested Citation

  • Wang, Muyun & Zhang, Ying, 2024. "Controlling shareholders' equity pledge, litigation risk and corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004453
    DOI: 10.1016/j.iref.2024.103453
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    References listed on IDEAS

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    Cited by:

    1. Ding, Zhaozeng, 2025. "Controlling shareholder equity pledges and corporate litigation: The role of organization participation in corporate governance," Finance Research Letters, Elsevier, vol. 86(PA).
    2. Li, Ziqi & Cai, Zhihao & Huang, Ho-Chuan, 2025. "Unpacking the black box: Board co-option and equity pledging by controlling shareholders," Finance Research Letters, Elsevier, vol. 82(C).
    3. Zhao, Zexia & Sun, Licheng, 2025. "How does climate policy uncertainty affect the uncertainty of stock returns of industrial enterprises in typical policy markets? Evidence from China," Finance Research Letters, Elsevier, vol. 86(PD).
    4. Ma, Haiyan & Ma, Xiaoning & Lei, Xue & Jiang, Yu & Li, Yuan, 2026. "When lawsuits speak louder: Litigation risk and corporate financing constraints," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 578-590.
    5. Guo, Qin & Zhao, Yuanping, 2025. "The influence mechanism of controlling shareholders' equity pledges on corporate risk-taking," Finance Research Letters, Elsevier, vol. 82(C).
    6. Li, Ziqi & Cai, Zhihao & Huang, Ho-Chuan, 2026. "The governance nexus: The impact of CFO-CEO collusion on controlling shareholders’ equity pledging," Research in International Business and Finance, Elsevier, vol. 82(C).

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