Blockholders

Working Paper

Shareholder Wealth Consequences of Insider Pledging of Company Stock as Collateral for Personal Loans

We study a wide-spread yet unexplored corporate governance phenomenon: the pledging of company stock by insiders as collateral for personal bank loans. Utilizing a regulatory change that exogenously decreases pledging, we document a negative...Read more

Ronald Masulis
Ying Dou
29 January 2019

Constraining Dominant Shareholders’ Self-Dealing: The Legal Framework in France, Germany, and Italy

All jurisdictions supply corporations with legal tools to prevent or punish asset diversion by those, whether managers or dominant shareholders, who are in control. As previous research has shown, these rules, doctrines and remedies are far from...Read more

Pierre-Henri Conac
Luca Enriques
Martin Gelter
01 October 2007

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