Determinants of Stock Pledge Risk, ESG and Firm-specific Financial Factors. A novel model to measure Risk associated with Stock Pledges

Abstract

The study aims to present a theoretical model indicating the factors influencing stock pledge risk and the different aspects constituting each factor. For this purpose, it collects recently published articles investigating stock pledge risk and employs qualitative content analysis techniques. The authors run different queries like “word tree”, “word frequency map”, and “word tag”. The study observes that ESG and firm-specific variables influence the stock pledge risk. The study also finds determinants of ESG, stock pledge risk and firm-related financial factors. Finally, the study offers a theoretical model and recommends that future researchers use the model to assess the stock pledge risk under the umbrella of ESG and firm-specific financial factors. Moreover, the study named the model as Fin-ESG-SPR model of Li et al. (2024).