Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)

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Insider Share-Pledging, Implicit Guarantees and Financing Constraints: Based on CSMAR Database

Authors
Yuxi Liu1, *
1Business School, Sichuan University, Chengdu, 610075, Sichuan, China
*Corresponding author. Email: yuxil@stu.scu.edu.cn
Corresponding Author
Yuxi Liu
Available Online 10 August 2023.
DOI
10.2991/978-94-6463-198-2_111How to use a DOI?
Keywords
Equity pledge; financial constraints; implicit government guarantee
Abstract

Financing constraint has always been an important factor hindering the healthy development of China’s real economy. Share pledging is the common financing method in the current mainland capital market, and the implicit guarantees affect the difficulty of financing. This paper is to investigate the impact of share pledging caused by major stockholders to the financing constraints. Taking a-share listed companies in Shanghai and Shenzhen stock exchanges from 2005 to 2020 as samples, we select ordered logistic regression with five indicators to measure the degree of financing constraints, and examine the relationship between equity pledging and financing constraints based on multiple regression model. The results suggest that equity pledging is correlated with the company’s financial constraint. Besides, the implicit government guarantees significantly alleviate this impact. We further contribute to the literature on financing constraints and equity pledging by discussing the choice of business strategy during the period of insider equity pledging.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
Series
Atlantis Highlights in Computer Sciences
Publication Date
10 August 2023
ISBN
978-94-6463-198-2
ISSN
2589-4900
DOI
10.2991/978-94-6463-198-2_111How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuxi Liu
PY  - 2023
DA  - 2023/08/10
TI  - Insider Share-Pledging, Implicit Guarantees and Financing Constraints: Based on CSMAR Database
BT  - Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
PB  - Atlantis Press
SP  - 1078
EP  - 1086
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-198-2_111
DO  - 10.2991/978-94-6463-198-2_111
ID  - Liu2023
ER  -