Date: 19 December 2024 (Thu)
Webinar
Webinar Series:
Capital Marketing Development: China and Asia
Share Pledging in China: Funding Listed Firms or Funding Entrepreneurship?
19 December 2024, Thursday
10:00 am – 11:10 am, Thursday (Singapore Time, UTC+8)
[Share Pledging in China: Funding Listed Firms or Funding Entrepreneurship?]
This paper connects share pledging with entrepreneurial activities in the context of China. Survey evidence shows that 33.0% of listed firms’ largest shareholders invested pledging funds in creating new firms. By linking firm registration data with pledging data, the authors show a positive relation between pledging transactions and entrepreneurial activities. Utilizing the 2013 exchange market launch as a quasi-natural experiment that favors pledging by private shareholders over state-owned shareholders, our difference-in-differences analysis shows the relation is likely causal. The authors also demonstrate that shareholders invest in industries encouraged by the government and follow a momentum-like strategy by investing in past winners.
Speaker:
Bibo LIU, Assistant Dean and Associate Professor (with tenure), PBC School of Finance, Tsinghua University
Co-authors:
Zhiguo HE, James Irvin Miller Professor of Finance, Graduate School of Business, Stanford University and Senior Fellow, ABFER
Feifei ZHU, Assistant Professor, School of Finance, Central University of Finance and Economics
Discussant:
Jun QIAN, Professor of Finance and Executive Dean, International School of Finance (FISF), Fudan University and Senior Fellow, ABFER
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Event Website
https://abfer.org/events/abfer-events/webinar-series/388:webinarseries-cmd-38
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About the Webinar
Financial market development goes hand-in-hand with economic growth. The development of China's capital markets in terms of size, regulations, capability, and efficiency has been impressive. China may now even lead globally in some dimensions, notably e-payments systems. Yet, China's capital markets are still a work-in-progress facing both generic and unique challenges. Other Asian capital markets have even greater uneven development. Some in advanced Asian economies have acquired globally acclaimed reputation and capabilities while various regulatory and structural weaknesses dwarf others. Corporations and investors have been inclined to arbitrage cross-border regulatory and developmental gaps; so the very uneven status of capital markets across Asia is a policy issue for the governments in the entire region and perhaps globally. Analysing the positive and negative lessons in the functioning of Asia's capital markets, and identifying reforms and applications of technology that could further improve Asian capital markets' allocation efficiency, financial inclusion, and forewarning against reforms that might cause problems can benefit practitioners, policymakers and researchers, and can contribute significantly to overall prosperity.
The ABFER and the University of Chicago's Becker Friedman Institute China (BFI-China), in collaboration with National University of Singapore (NUS) Business School, Shanghai Advanced Institute of Finance (SAIF), The Chinese University of Hong Kong (CUHK) Department of Economics, CUHK-Shenzhen and Tsinghua University PBC School of Finance (Tsinghua PBCSF), hope to provide a virtual network to benefit researchers, policymakers, and practitioners from Asia and beyond.