What question did this study set out to answer?

This study aims to assess whether equity checks and balances can mitigate controlling shareholders' over-guarantee behaviors in Chinese listed companies.

June 12, 2026International Review of Economics & FinanceOpen Access

Governance effectiveness of equity checks and balances on corporate over-guarantee behaviors

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Authors

CKCai KeHuanggang Normal University JDJiaHao DuZhongnan University of Economics and Law

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Implication

Randomized trial investigates equity checks' influence on corporate over-guarantee behaviors, suggesting importance of transparency.

Key Points

This study aims to assess whether equity checks and balances can mitigate controlling shareholders' over-guarantee behaviors in Chinese listed companies.
Utilized a panel logit model analyzing A-share companies from 2012 to 2019
Examined variations in governance effects by investor type and holding period
Focused on institutional versus non-institutional investor impacts
Higher equity checks and balances lead to a lower likelihood of over-guarantee behaviors
Institutional investors exhibit stronger and more stable governance effects compared to non-institutional investors
Declining short-term institutional shareholding correlates positively with increased over-guarantee behaviors

Cite This Study

Ke et al. (2026) studied this question.

synapsesocial.com/papers/6a2ba1ca8101cf8926f01135 https://doi.org/10.1016/j.iref.2026.105504

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Governance effectiveness of equity checks and balances on corporate over-guarantee behaviors

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Implication

Key Points

Cite This Study

Governance effectiveness of equity checks and balances on corporate over-guarantee behaviors

Discussion

Member takes

Implication

Key Points

Cite This Study

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