Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)

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Equity Pledge, Commercial Credit and Financial Asset Allocation

Authors
Shengdao Gan1, Zhongying Zhao1, *, Xiang Liu1
1Business School, Sichuan University, Chengdu, P.R. China
*Corresponding author. Email: zzy12398@aliyun.com
Corresponding Author
Zhongying Zhao
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-056-5_56How to use a DOI?
Keywords
Controlling Shareholder; Equity Pledge; Financial Asset Allocation; Commercial Credit
Abstract

Since the split share structure reform in 2005, the behavior of equity pledge of listed companies in China has been increasing, which has a profound impact on the operation of listed companies. Based on the data of A-share listed companies from 2014 to 2021, and from the perspective of control right transfer risk, this paper proves that the equity pledge of controlling shareholders significantly inhibits the financial asset allocation of listed companies, and that a higher level of commercial credit and a lower degree of product market competition can weaken this inhibition. The above results above discuss the difference of economic consequences of controlling shareholder's equity pledge in different situations. Further research shows that listed companies after pledge tend to reduce the holding of trading financial assets and derivative financial assets.

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 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)
Series
Atlantis Highlights in Computer Sciences
Publication Date
29 December 2022
ISBN
978-94-6463-056-5
ISSN
2589-4900
DOI
10.2991/978-94-6463-056-5_56How 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  - Shengdao Gan
AU  - Zhongying Zhao
AU  - Xiang Liu
PY  - 2022
DA  - 2022/12/29
TI  - Equity Pledge, Commercial Credit and Financial Asset Allocation
BT  - Proceedings of the 2022 2nd International Conference on Management Science and Software Engineering (ICMSSE 2022)
PB  - Atlantis Press
SP  - 393
EP  - 402
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-056-5_56
DO  - 10.2991/978-94-6463-056-5_56
ID  - Gan2022
ER  -