Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/94388
Title: | Insider share pledging and firm value consequences under the COVID-19 : evidence from China | Authors: | Xiao, H Chen, X Fang, H Zhang, Y |
Issue Date: | 2021 | Source: | Applied economics, 2021, v. 53, no. 56, p. 6522-6534 | Abstract: | Share pledging, the practice in which shareholders secure a loan using their shares, has become a global phenomenon in recent years. In this paper, we investigate the effect of such corporate insider actions on outsider wealth during the pandemic. Concretely, we examine how firms’ market value change when corporate insiders pledge their shareholdings during China’s COVID-19 outbreak. It is found that market investors responded adversely to share pledging announcements by firms in the high pandemic-affected regions. Besides, the state ownership and better corporate governance structures of the pledged firms could mitigate such adverse impacts. Our study highlights a specific externality generated by corporate insiders to outside shareholders during a crisis period. | Keywords: | COVID-19 Event study Firm value Managerial incentive Share pledging |
Publisher: | Routledge, Taylor & Francis Group | Journal: | Applied economics | ISSN: | 0003-6846 | EISSN: | 1466-4283 | DOI: | 10.1080/00036846.2021.1946476 | Rights: | © 2021 Informa UK Limited, trading as Taylor & Francis Group This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 20 Aug 2021 (published online), available at: http://www.tandfonline.com/10.1080/00036846.2021.1946476 |
Appears in Collections: | Journal/Magazine Article |
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File | Description | Size | Format | |
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Zhang_Insider_Share_Pledging.pdf | Pre-Published version | 905.02 kB | Adobe PDF | View/Open |
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