Share Pledges and Margin Call Pressure
學年 107
學期 1
出版（發表）日期 2018-10-01
作品名稱 Share Pledges and Margin Call Pressure
作品名稱（其他語言）
著者 Konan Chan; Hung-Kun Chen; Shing-yang Hu; Yu-Jane Liu
單位
出版者
著錄名稱、卷期、頁數 Journal of Corporate Finance 52, p.96-117
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 benefit. 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 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 effectively reduce the likelihood of firms’ repurchasing. 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;self-serving
語言 en_US
ISSN 0929-1199
期刊性質 國外
收錄於 SSCI Scopus NotTSSCI
產學合作
通訊作者 Chen, Hung-Kun
審稿制度 是
國別 NLD
公開徵稿
出版型式 ,電子版,紙本
相關連結

機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/114944 )