This paper studies the connection between share pledging and entrepreneurial activities in China, challenging the common wisdom that share pledging funds circle back to the listed firms. Share pledging funds are at the discretion of the shareholders who pledge their publicly traded shares, and...

Using moderation and mediation analyses, we examine when and how a concentrated ownership structure might be beneficial for minority shareholders in China's stock markets. Our findings suggest that a median level of ownership concentration in Chinese private companies enhances earnings...