Share Pledges and Margin Call Pressure | |
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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 | en_US |
收錄於 | |
會議性質 | 國際 |
校內研討會地點 | 無 |
研討會時間 | 20160103~20160105 |
通訊作者 | |
國別 | USA |
公開徵稿 | |
出版型式 | |
出處 | 2016 American Finance Association Annual Meeting |
相關連結 |
機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/106620 ) |