The Impact of Institutional Cross-shareholdings on Financial Distress
DOI:
https://doi.org/10.54097/fbem.v10i1.10378Keywords:
Institutional cross-shareholding, Financial distress, Management's shareholding, Governance effects.Abstract
Using the data of 4,057 listed companies in Shanghai and Shenzhen A-shares from 2012 to 2021, we explore the impact of institutional cross-shareholdings on financial distress and its mechanism of action. The research results show that institutional cross-shareholding is positively related to financial distress. Further research finds that: management shareholding ratio is an important channel for institutional cross-shareholding to influence financial distress; the impact of institutional cross-shareholding on financial distress is more significant in standard unqualified audit opinion and non-state-owned enterprises. The findings of this paper provide theoretical and empirical evidence for the effect of institutional cross-shareholding on corporate financial distress and its impact mechanism.
Downloads
References
Brooks, C., Z. Chen and Y. Zeng, Institutional Cross-Ownership and Corporate Strategy:The Case of Mergers and Acquisitions, Journal of Corporate Finance, 2018, Vol.48, 187-216.
CHEN Jing. An empirical analysis of financial deterioration prediction of listed companies[J]. Accounting Research, 1999, (04): 32-39.
ZHANG Jinchang,WANG Dawei. Early warning of financial difficulties: conceptual definition and theoretical analysis[J]. Financial Series, 2020, (12): 61-69.
Altman Edward I, Haldeman Robert G, Narayanan P. ZETATM Analysis A New Model to Identify Bankruptcy Risk of Corporations[J].Journal of Banking & Finance, 1977, 1 (01): 29-54.
Chen X, Harford J, Li K. Monitoring: Which Institutions Matter?[J]. Journal of Financial Economics, 2007, (86): 279-305.
LI Bingcheng . Research on the formation process of corporate financial difficulties[J]. contemporary finance and economics, 2004, (01): 109-112.
XIAO Xianhui,XIE Chi . The influence of macroeconomic factors on the risk of financial distress of enterprises[J]. Journal of Xiangtan University (Philosophy and Social Sciences Edition), 2012, 36(04): 88-93.
ZHEN Hongxian,WANG Jinle. Can Institutional Investors Ease Financing Constraints?— Perspective Based on Cash Value [J].Accounting Research,2016, (12): 51-57.
Bjerring J H, Lakonishok J, Vermaelen T. Stock Prices and Financial Analysts’ Recommendations[J].The Journal of Finance,1983,38(01):187-204.
CHEN Zhuming,CHENG Yu. Information Exchange, Stock Liquidity and Stock Price Crash Risk of Institutional Investors[J]. Southern Finance,2020,(05):44-52.
Shleifer A, Vishny R W. Large Shareholders and Corperate Control[J].Scholarly Articles,1986,94(03): 461-488.
Gillan S, Starks L T. A Survey of Shareholder Activism: Motivation and Empirical Evidence[J]. Electronic Journal,1998,2(03):56-78.
XUE Kunkun,WANG Kai . Institutional Shareholding and Corporate Behavior: Catering to or Improving?——Empirical Evidence Based on Corporate Earnings Management[J]. Journal of Zhongnan University of Economics and Law,2021,(03):15-25.
TANG Songlian,YUAN Chunsheng . Supervision or Seizure: A Study on the Identification of the Governance Role of Institutional Investors: Empirical Evidence from China's Capital Market [J]. admin reviews,2010,22(08):19-29.
YE Yingying,YANG Qing,HU Yang.Does equity pledge trigger herd behavior of institutional investors——The mediating effect based on information quality[J].Accounting Research,2022(02):146-163.
LIU Xiaoxia,DI Ran. Heterogeneous institutional investors' shareholding and stock price collapse risk[J].Modern Finance and Economics(Journal of Tianjin University of Finance and Economics),2019,39(07):3-21
WANG Bingnan,GUO Jingxian,LU Ying,WANG Zhongsong. Research on the Impact of Institutional Shareholding on Corporate Financial Distress: The Moderating Role of Enterprise Digital Transformation. management modernization, 2022 (06): 22-29.
Altman.Financial Ratios,Discriminant Analysis and the Predictors of Cooporate Bandruptcy[J].Journal of Finance. 1968,23(4):589-609.
ZHOU Taiyun,XING Fei,YAO Gang. The impact of institutional cross-shareholding on enterprise value [J]. Securities Market Herald,2021(02):30-40.
WEN Zhonglin,HOU Jietai,ZHANG Lei. Comparison and application of moderating effect and mediating effect [J]. Journal of Psychology, 2005(02):268-274.
WEN Zhonglin, YE Baojuan. Mediation Effect Analysis: Method and Model Development [J]. Advances in Psychological Science,2014,22(05):731-745.
WU Peng,YANG Ke,QIAO Zhi,et al. Research on the Impact of Corporate ESG Performance on Audit Fees——Empirical Evidence from A-share Listed Companies[J].Friends of Accounting, 2023(14):18-27.
LI Hongyin. Can digital transformation curb the risk of stock price crash? [J].Finance and Economics Series,2023(07):58-67.
