Tolerance.ca
Director / Editor: Victor Teboul, Ph.D.
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Independent and neutral with regard to all political and religious orientations, Tolerance.ca® aims to promote awareness of the major democratic principles on which tolerance is based.

Share pledging is linked to higher corporate misconduct in China, study finds

By Jie Zhang, Associate Professor of Finance, Trent University
Share pledging, where corporate insiders uses shares as collateral for personal loans, has been at the heart of several high-profile corporate scandals in recent years.

One of the most notorious cases was the 2002 WorldCom accounting fraud scandal. From 1999 to 2002, the U.S.-based telecom company inflated profits to maintain its stock price. The scandal was largely driven by the former CEO Bernard Ebbers’ attempts…The Conversation


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