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Ownership structure and collateral requirements: evidence from China's listed firms

Journal Article


Abstract


  • 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.

UOW Authors


  •   An, Can (external author)
  •   Pan, Xiaofei
  •   Tian, Gary G. (external author)

Publication Date


  • 2014

Citation


  • An, C., Pan, X. & Tian, G. Gang. (2014). Ownership structure and collateral requirements: evidence from China's listed firms. International Review of Financial Analysis, 36 168-178.

Scopus Eid


  • 2-s2.0-84927517754

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/636

Has Global Citation Frequency


Number Of Pages


  • 10

Start Page


  • 168

End Page


  • 178

Volume


  • 36

Place Of Publication


  • Netherlands

Abstract


  • 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.

UOW Authors


  •   An, Can (external author)
  •   Pan, Xiaofei
  •   Tian, Gary G. (external author)

Publication Date


  • 2014

Citation


  • An, C., Pan, X. & Tian, G. Gang. (2014). Ownership structure and collateral requirements: evidence from China's listed firms. International Review of Financial Analysis, 36 168-178.

Scopus Eid


  • 2-s2.0-84927517754

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/636

Has Global Citation Frequency


Number Of Pages


  • 10

Start Page


  • 168

End Page


  • 178

Volume


  • 36

Place Of Publication


  • Netherlands