Does share pledging affect corporate philanthropy? Evidence from China

JC Xiong (First Author), YX Tong (Participant Author), FD Zhang (Participant Author), CY Ouyang (Participant Author), KC Chan (Participant Author)

Research output: Contribution to journalJournal

2 Citations (Web of Science)


We investigate the effect of insiders' share pledging (SP) on corporate philanthropy and find that SP firms engage in corporate philanthropy more often than non-SP firms. This effect is more pronounced for firms with higher downward price pressure or margin call risks. Our results remain robust after using alternative measures and addressing endogeneity issues. We also sample a group of SP and non-SP firms that make comparable philanthropic donations and find that SP firms show better market performance and lower downside risks of stock price movements than non-SP firms, indicating that SP firms use corporate philanthropy to alleviate margin call risks.
Original languageEnglish
Number of pages29
JournalJournal of Business Finance and Accounting
Early online date13 Feb 2023
Publication statusPublished - 2023

Corresponding author email

Project sponsor

National Natural Science Foundation of China (NSFC)
Social Science Foundation of Jiangxi Province

Project No.



  • Corporate philanthropy
  • Insurance-like protection
  • Margin call
  • Share pledging

Indexed by

  • SSCI
  • ABDC-A*


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