The Influence Of Equity Pledge Of Controlling Shareholders On The Value Of Listed Companies

Equity pledge has occurred many times in the domestic capital market,among which the majority shareholder's equity pledge is particularly frequent.In reality,equity pledge has two advantages: first,equity pledge can expand financing channels for listed companies.Second,because equity has the characteristics of easy liquidity and high liquidity,the risk of financial institutions realizing equity is low.Equity pledge positive role is to controlling shareholders have incentive effect,make the controlling shareholders through the efforts to improve corporate governance of listed companies to improve business performance development play a positive role.However,the equity pledge of controlling shareholders will send negative information to the market,such as the financial situation of listed companies is worrying and the capital of controlling shareholders is tight.Equity pledge financing,meanwhile,must lead to control of the risk,and because of excessive leverage risk increases the controlling shareholders of the profits of listed companies,will cause the problem of agency,and the value of listed companies have a negative impact.This article selects the Internet industry on behalf of the gem listed company networks,used frequently with its controlling shareholder equity pledge financing events as the breakthrough point,through the analysis of music networks of the controlling shareholder equity pledge to deepen the agency problem,corporate earnings quality,short-and long-term market effect,the influence of human resources and management environment to prove the controlling shareholder,long-term high proportion,frequent equity pledge have negative effects on the value of listed companies.In this paper,using event study analysis of equity pledge relationship with the listed company value,the study found that: the controlling shareholders of listed companies after the big proportion equity pledge,will significantly enhance agent problem,makes the controlling shareholder change risk preference,mismatch company resources,the company was in financial crisis easily;At the same time,in order to maintain the company's stock price,the controlling shareholders will adopt aggressive earnings management policies to reduce the company's earnings quality and damage the company's long-term value.From the point of view of the external performance-the company's share price of the value of the company,for the company's equity pledge short-term fluctuations impact is not big,but will have negative impact on the company's long-term share price,the higher the pledge proportion,the more serious the negative impact;Equity pledge may also further damage the company's value by damaging the company's human resources and worsening the operating environment.In view of the equity pledge behavior of the controlling shareholders of letv network,this paper puts forward relevant Suggestions: improving relevant laws and regulations of equity pledge;Improve the transparency of information disclosure of equity pledge;Strengthening the intelligence and external supervision of the company;We will increase the cost of equity pledge violations.