Proceedings of the 3rd International Conference on Internet Finance and Digital Economy (ICIFDE 2023)

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Controlling Shareholders’ Share Pledging and the Strategic Change: Empirical Evidence from the Chinese A-share Market

Authors
JunMing Zhuang1, *, Ai Su2
1School of Economics and Management, Dongguan Polytechnic, Dongguan, 523808, China
2School of Public Administration, South China University of Technology, Guangzhou, 510641, China
*Corresponding author. Email: zhuang_jm@126.com
Corresponding Author
JunMing Zhuang
Available Online 29 October 2023.
DOI
10.2991/978-94-6463-270-5_34How to use a DOI?
Keywords
controlling shareholder; share pledging; strategic change; investment inefficiency
Abstract

We use a sample of Chinese A-share listed companies from 2008 to 2019 to explore the impact of controlling shareholders’ share pledging on the strategic change. The empirical results show that out of the motive of maintaining control, controlling shareholders’ share pledging intensifies the strategic change. A further study based on economic consequences reveals that the strategic change plays a partial mediating role in the relationship between controlling shareholders’ share pledging and investment inefficiency, which is manifested as that controlling shareholders’ share pledging intensifies the strategic change and increases the level of investment insufficiency. Our study provides empirical evidence on the relationship between the behavior of major shareholders and company strategic change, which has implications for company governance, sustainable development, and investor interest protection.

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 3rd International Conference on Internet Finance and Digital Economy (ICIFDE 2023)
Series
Atlantis Highlights in Economics, Business and Management
Publication Date
29 October 2023
ISBN
978-94-6463-270-5
ISSN
2667-1271
DOI
10.2991/978-94-6463-270-5_34How 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  - JunMing Zhuang
AU  - Ai Su
PY  - 2023
DA  - 2023/10/29
TI  - Controlling Shareholders’ Share Pledging and the Strategic Change: Empirical Evidence from the Chinese A-share Market
BT  - Proceedings of the 3rd International Conference on Internet Finance and Digital Economy (ICIFDE 2023)
PB  - Atlantis Press
SP  - 308
EP  - 320
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-270-5_34
DO  - 10.2991/978-94-6463-270-5_34
ID  - Zhuang2023
ER  -