Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach
This study examines how factors influencing zero pledging vary with different levels of pledging in family-owned firms. This study uses a zero-inflated beta model to differentiate the lack of opposition to pledge from the positive endorsement of pledge in an institutional setting with regulatory ple...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2459182 |
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| author | V. Vijayagopal M. Thenmozhi |
| author_facet | V. Vijayagopal M. Thenmozhi |
| author_sort | V. Vijayagopal |
| collection | DOAJ |
| description | This study examines how factors influencing zero pledging vary with different levels of pledging in family-owned firms. This study uses a zero-inflated beta model to differentiate the lack of opposition to pledge from the positive endorsement of pledge in an institutional setting with regulatory pledging disclosure. Examining ownership behavior related to the pledge decision, it is observed that family-owned firms are not against pledging and prefer to take risks and pledge to exploit available opportunities. Family participation in management encourages pledging, but business group-affiliation discourages it. Further, exploring the impact of different dimensions of socioemotional wealth (SEW) on the decision to pledge shares in family firms, this study uses a sub-sample analysis based on level of promoter shareholding to unfold the conflict between different SEW dimensions on the decision to pledge shares. The analysis highlights the possibility of SEW having a positive and negative influence simultaneously on strategic decision-making in family firms on certain occasions and the varying influence of specific aspects of SEW at different levels of promoter shareholding. We provide evidence that concern for reputation eclipses desire for retention of control while taking pledge decisions. |
| format | Article |
| id | doaj-art-247268e3ca2b40a0b90a1c44b527c9e9 |
| institution | Kabale University |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-247268e3ca2b40a0b90a1c44b527c9e92025-02-03T05:36:02ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2459182Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approachV. Vijayagopal0M. Thenmozhi1Department of Management Studies, Indian Institute of Technology, Madras, Chennai, IndiaDepartment of Management Studies, Indian Institute of Technology, Madras, Chennai, IndiaThis study examines how factors influencing zero pledging vary with different levels of pledging in family-owned firms. This study uses a zero-inflated beta model to differentiate the lack of opposition to pledge from the positive endorsement of pledge in an institutional setting with regulatory pledging disclosure. Examining ownership behavior related to the pledge decision, it is observed that family-owned firms are not against pledging and prefer to take risks and pledge to exploit available opportunities. Family participation in management encourages pledging, but business group-affiliation discourages it. Further, exploring the impact of different dimensions of socioemotional wealth (SEW) on the decision to pledge shares in family firms, this study uses a sub-sample analysis based on level of promoter shareholding to unfold the conflict between different SEW dimensions on the decision to pledge shares. The analysis highlights the possibility of SEW having a positive and negative influence simultaneously on strategic decision-making in family firms on certain occasions and the varying influence of specific aspects of SEW at different levels of promoter shareholding. We provide evidence that concern for reputation eclipses desire for retention of control while taking pledge decisions.https://www.tandfonline.com/doi/10.1080/23322039.2025.2459182Ownership behaviorpledged sharessocioemotional wealth (SEW)reputationcontrolpromoter shareholding |
| spellingShingle | V. Vijayagopal M. Thenmozhi Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach Cogent Economics & Finance Ownership behavior pledged shares socioemotional wealth (SEW) reputation control promoter shareholding |
| title | Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach |
| title_full | Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach |
| title_fullStr | Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach |
| title_full_unstemmed | Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach |
| title_short | Ownership dynamics and share pledging behavior in emerging markets: a zero-inflated model approach |
| title_sort | ownership dynamics and share pledging behavior in emerging markets a zero inflated model approach |
| topic | Ownership behavior pledged shares socioemotional wealth (SEW) reputation control promoter shareholding |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2025.2459182 |
| work_keys_str_mv | AT vvijayagopal ownershipdynamicsandsharepledgingbehaviorinemergingmarketsazeroinflatedmodelapproach AT mthenmozhi ownershipdynamicsandsharepledgingbehaviorinemergingmarketsazeroinflatedmodelapproach |