The Impact Of The Controlling Shareholders' Stock Pledge On Listed Companies's Financial Risk

In recent years,stock pledge has become more and more frequent,which has become a popular financing channel to the controlling shareholders of listed companies.But due to the immature market and the unsound laws and regulations,there are also hidden risk.The most concerned thing is sell off the pledge stocks,which has happened in LeTV.However,companies that do not show a crisis after controlling shareholders'stock pledge are the main parts of the market.If the stock pledge behavior changes the company's operating activities and operating environment,it will also increase the company's financial risk,which will affect the stability of the market.In the present study,there are not many studies on the impact of controlling shareholder's stock pledge on the operating activities and operating environment of listed companies,and there is also little research to link the controlling shareholder's stock pledge to the financial risk of listed companies.As we know,the controlling shareholders have absolute influence on listed companies,controlling shareholders' corporate governance practices and the economic environment in which the company is located are likely to change after the stock pledge,then it affects the financial risk of listed companies.This effect is worth the attention of other market participants,especially minority shareholders.It has a research significance to find out how to prevent the controlling shareholder's stock pledge may bring the financial risk to the listed companies.In this paper,the research object is the YINYI REAL ESTATE CO.LTD,the study will be based on the Information asymmetry theory and Principal-agent theory,analyzing the changes of corporate governance behavior and the negative impact on the operating environment of the listed company resulted in the change of financial risk of listed company after the shareholder's stock pledge.And will analyzes the influence of the controlling shareholder's equity pledge on the financial risk from the perspective of investment risk,financing risk,liquidity risk and income distribution risk.Comprehensive analysis draws the conclusion,controlling shareholder's stock pledge will result in the increase of financial risk of YINYI REAL ESTATE CO.LTD,and will give relevant suggestions to prevent and dissolve the additional financial risk that the controlling shareholder's stock pledge may bring at the end of the paper.