Cover Image

Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China

As a new financing method, equity pledges are popular in Chinas capital market. With the emergence of new financing models, will the relationship between financing and investment in corporate financial management change? The purpose of this study is to determine whether the controlling shareholders&...

Full description

Saved in:
Bibliographic Details
Main Authors: Duan, Qianqi, Mohd Nor, Normaziah, Selamat, Aslam Izah
Format: Article
Language:English
Published: Asian Economic and Social Society 2023
Online Access:http://psasir.upm.edu.my/id/eprint/107383/1/107383.pdf
http://psasir.upm.edu.my/id/eprint/107383/
https://archive.aessweb.com/index.php/5002/article/view/4863
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.107383
record_format eprints
spelling my.upm.eprints.1073832024-11-04T03:34:03Z http://psasir.upm.edu.my/id/eprint/107383/ Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China Duan, Qianqi Mohd Nor, Normaziah Selamat, Aslam Izah As a new financing method, equity pledges are popular in Chinas capital market. With the emergence of new financing models, will the relationship between financing and investment in corporate financial management change? The purpose of this study is to determine whether the controlling shareholders' equity pledges affect corporate merger and acquisition (M&A) investment decisions. This paper uses data for listed companies from the China Stock Market & Accounting Research (CSMAR) database, and Stata 17 is used as the data processing software. The M&A variable is virtual and uses the logit model to study the relationship between controlling shareholders' equity pledges and M&A investments. To test the robustness of the results, we replace the key variables, transform the model, and use the Gaussian Mixture Model (GMM) method to obtain the same results. The study found a positive correlation between controlling shareholders' equity pledges and M&A investments. Further cross-sectional study shows that the positive correlation is stronger in state-owned companies, non-manufacturing companies, and companies with low pledge ratios. This study is conducive to standardizing the equity pledge behavior of listed companies and safeguarding the interests of investors. Asian Economic and Social Society 2023-08-25 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/107383/1/107383.pdf Duan, Qianqi and Mohd Nor, Normaziah and Selamat, Aslam Izah (2023) Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China. Asian Economic and Financial Review, 13 (11). 773 - 788. ISSN 2305-2147; eISSN: 2222-6737 https://archive.aessweb.com/index.php/5002/article/view/4863 10.55493/5002.v13i11.4863
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description As a new financing method, equity pledges are popular in Chinas capital market. With the emergence of new financing models, will the relationship between financing and investment in corporate financial management change? The purpose of this study is to determine whether the controlling shareholders' equity pledges affect corporate merger and acquisition (M&A) investment decisions. This paper uses data for listed companies from the China Stock Market & Accounting Research (CSMAR) database, and Stata 17 is used as the data processing software. The M&A variable is virtual and uses the logit model to study the relationship between controlling shareholders' equity pledges and M&A investments. To test the robustness of the results, we replace the key variables, transform the model, and use the Gaussian Mixture Model (GMM) method to obtain the same results. The study found a positive correlation between controlling shareholders' equity pledges and M&A investments. Further cross-sectional study shows that the positive correlation is stronger in state-owned companies, non-manufacturing companies, and companies with low pledge ratios. This study is conducive to standardizing the equity pledge behavior of listed companies and safeguarding the interests of investors.
format Article
author Duan, Qianqi
Mohd Nor, Normaziah
Selamat, Aslam Izah
spellingShingle Duan, Qianqi
Mohd Nor, Normaziah
Selamat, Aslam Izah
Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
author_facet Duan, Qianqi
Mohd Nor, Normaziah
Selamat, Aslam Izah
author_sort Duan, Qianqi
title Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
title_short Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
title_full Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
title_fullStr Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
title_full_unstemmed Do controlling shareholders' equity pledges affect M&A investment? evidence from listed companies in China
title_sort do controlling shareholders' equity pledges affect m&a investment? evidence from listed companies in china
publisher Asian Economic and Social Society
publishDate 2023
url http://psasir.upm.edu.my/id/eprint/107383/1/107383.pdf
http://psasir.upm.edu.my/id/eprint/107383/
https://archive.aessweb.com/index.php/5002/article/view/4863
_version_ 1814936549478891520
score 13.211869

Similar Items