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Ownership structure and collateral requirements: Evidence from China’s listed firms

Version 2 2024-06-17, 15:18
Version 1 2015-09-09, 15:50
journal contribution
posted on 2024-06-17, 15:18 authored by C An, X Pan, GG Tian
This paper examines the effect of ownership structure on collateral requirements using a sample of China's listed firms from 2007 to 2009. We find that compared to privately controlled companies, state-controlled companies are less likely to be required to pledge collateral, and such a difference is more pronounced for firms in troubled industries. The empirical results also show that the effect of state control on collateral requirements is weaker in companies with more foreign ownership. Moreover, the effect of state control on collateral requirements is weaker in companies with more third party guarantees. Finally, we find that the effect of state control on collateral requirements is more pronounced for firms operating in regions with more government intervention.

History

Journal

International review of financial analysis

Volume

36

Pagination

168-178

Location

Amsterdam, The Netherlands

ISSN

1873-8079

Language

eng

Publication classification

C Journal article, C1.1 Refereed article in a scholarly journal

Copyright notice

2014, Elsevier

Publisher

Elsevier