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Major shareholder equity pledge and litigation risk

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  • Ji, Tuo
  • Cai, Dong

Abstract

This study analyzes the impact of significant shareholder equity pledges on litigation risk, and the results show that significant shareholder equity pledges contribute to the elevation of corporates' litigation risk and that increased information transparency can reduce litigation risk when a major shareholder's equity is pledged. This study conducted robustness and endogeneity analyses, which also support the conclusion.

Suggested Citation

  • Ji, Tuo & Cai, Dong, 2024. "Major shareholder equity pledge and litigation risk," Finance Research Letters, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006202
    DOI: 10.1016/j.frl.2024.105590
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    References listed on IDEAS

    as
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