English  |  正體中文  |  简体中文  |  Items with full text/Total items : 52375/87459 (60%)
Visitors : 9156249      Online Users : 209
RC Version 7.0 © Powered By DSPACE, MIT. Enhanced by NTU Library & TKU Library IR team.
Scope Tips:
  • please add "double quotation mark" for query phrases to get precise results
  • please goto advance search for comprehansive author search
  • Adv. Search
    HomeLoginUploadHelpAboutAdminister Goto mobile version
    Please use this identifier to cite or link to this item: http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/106620

    Title: Share Pledges and Margin Call Pressure
    Authors: Chan, Konan;Chen, Hung-Kun;Hu, Shing-yang;Liu, Yu-Jane
    Keywords: share pledges;margin call;repurchases;control right;controlling shareholders;opportunism
    Date: 2016-01-03
    Issue Date: 2016-04-27 11:18:54 (UTC+8)
    Abstract: 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.
    Relation: 2016 American Finance Association Annual Meeting
    Appears in Collections:[財務金融學系暨研究所] 會議論文

    Files in This Item:

    File Description SizeFormat

    All items in 機構典藏 are protected by copyright, with all rights reserved.

    DSpace Software Copyright © 2002-2004  MIT &  Hewlett-Packard  /   Enhanced by   NTU Library & TKU Library IR teams. Copyright ©   - Feedback