教師資料查詢 | 類別: 會議論文 | 教師: 陳鴻崑 Hung-Kun Chen (瀏覽個人網頁)

標題:Share Pledges and Margin Call Pressure
學年104
學期1
發表日期2016/01/03
作品名稱Share Pledges and Margin Call Pressure
作品名稱(其他語言)
著者Chan, Konan; Chen, Hung-Kun; Hu, Shing-yang; Liu, Yu-Jane
作品所屬單位
出版者
會議名稱2016 American Finance Association Annual Meeting
會議地點San Francisco, USA
摘要It is common practice worldwide for corporate insiders to put up stock as collateral for personal loans. We highlight a potential problem in such pledging. When controlling shareholders face a margin call threat if stock prices fall below the required level for a loan, they have an incentive to use corporate resources for their private benefits. We develop and test a margin call hypothesis that controlling shareholders may initiate share repurchases to fend off potential margin calls associated with pledged stocks in order to maintain their control rights. Investors seem to recognize such opportunistic behavior and discount the potential benefits of repurchase programs. However, share pledges are not reliably related to repurchases when control rights are not a concern. We further show that regulatory restrictions of control rights on pledging greatly reduce the likelihood of firms to repurchase. Overall, our results shed light on the impact of share pledges on corporate decisions.
關鍵字share pledges;margin call;repurchases;control right;controlling shareholders;opportunism
語言英文(美國)
收錄於
會議性質國際
校內研討會地點
研討會時間20160103~20160105
通訊作者
國別美國
公開徵稿
出版型式
出處2016 American Finance Association Annual Meeting
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