Academic Journal of Business & Management, 2023, 5(7); doi: 10.25236/AJBM.2023.050706.
Li Xintao
School of Business and Management, Shanghai International Studies University, Shanghai, China
In recent years, the pledge of stock rights is increasingly favored by shareholders.In this context, this paper studies the relationship between equity pledge and mergers and acquisitions under inside pledge supervision. Using the annual data of listed companies from 2007 to 2021, we find that inside pledge can inhibit the relationship between equity pledge and mergers and acquisitions. In addition, our endogeneity test is also robust.
Equity pledge; M&A; Inside Pledge
Li Xintao. Controlling Shareholders' Equity Pledge, Inside Pledge Supervision, and Merger and Acquisition Decisions. Academic Journal of Business & Management (2023) Vol. 5, Issue 7: 33-39. https://doi.org/10.25236/AJBM.2023.050706.
[1] Boone, A. L., & White, J. T. (2015). The effect of institutional ownership on firm transparency and information production. Journal of Financial Economics, 117(3), 508-533.
[2] Coyne, K. P. (1986). Sustainable competitive advantage—What it is, what it isn't. Business horizons, 29(1), 54-61.
[3] Fan, J. P., & Wong, T. J. (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of accounting and economics, 33(3), 401-425.
[4] Ficery, K., Herd, T., & Pursche, B. (2007). Where has all the synergy gone? The M&A puzzle. Journal of business Strategy, 28(5), 29-35.
[5] Havila, V., & Salmi, A. (2000). Spread of change in business networks: an empirical study of mergers and acquisitions in the graphic industry. Journal of Strategic Marketing, 8(2), 105-119.
[6] Khlifi, F. (2022). Web-based financial reporting, social media and information asymmetry: the case of Saudi Arabia. Journal of Financial Reporting and Accounting, 20(5), 994-1020.
[7] Li, X., & Li, Q. (2022). Does Margin Call Pressure Affect the M&A Decision of Controlling Shareholders With Equity Pledges: Evidence From Chinese Listed Company. Frontiers in Psychology, 2139.
[8] Matsusaka, J. G. (1993). Takeover motives during the conglomerate merger wave. The RAND Journal of Economics, 357-379.
[9] Morck, R. K. (1996). On the economics of concentrated ownership. Can. Bus. LJ, 26, 63.
[10] Murray, B., Svec, J., & Wright, D. (2017). Wealth transfer, signaling and leverage in M&A. International Review of Financial Analysis, 52, 203-212.
[11] Tao, F., Liu, X., Gao, L., & Xia, E. (2017). Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms. International Business Review, 26(1), 189-202.
[12] Waldman, D. A., & Javidan, M. (2009). Alternative forms of charismatic leadership in the integration of mergers and acquisitions. The Leadership Quarterly, 20(2), 130-142.