Research On Large Shareholders' Pledge Of Stock Rights And Excess Return Rate Of Stocks

The current equity pledge has gradually become a routine financing method for many listed companies.Equity pledge was once a neutral term,but in the current “bear market”,equity pledges were linked by investors and more and more stock price violent incidents.Then,can the equity pledge of the major shareholder generate excessive returns? How do small and medium investors see the right to pledge the equity and how to make the right decision? The impact of large shareholder equity pledge on stock excess return rate will be different at different stages of a complete stock market cycle? What are the factors that affect the listed company's CAR related to the equity pledge? These issues are worth exploring.This article first defines the "bull market" and "bear market." According to the general division of finance,if the market has increased by more than 10% in the past year,it is defined as “bull market”;if the market declines by more than 10% in the past year,it is “bear market”.Secondly,it analyzes the present situation of equity pledge of listed companies.It is found that in recent years,with the gradual improvement of the equity pledge system,more and more listed companies are financing through equity pledge,and their average pledges are increasing year by year.The scale of pledge is also growing.These companies also have the characteristics of wide industry distribution and large differences in equity pledges.Again,the relationship between the shareholding pledge of major shareholders and the excess return rate of stocks is theoretically combed,and the following hypotheses are put forward: 1.Under the bull market background,the financial environment is relatively healthy,and the major shareholders prefer to expand the operation or acquire the target through equity pledge.In order to improve the financial status of the company or increase the value of the company,thereby increasing the excess return rate of the stock;in the bear market background,the downturn in the financial market will amplify the internal problems of the company.The equity pledge of the listed company is likely to be the listing of the major shareholder for short selling.The company harms the interests of small and medium investors,which further deteriorates the financial situation of the company,thereby reducing the excess return of stocks.2.In the context of bull market and bear market,the number of shares pledge of major shareholders will have different effects on the excess returns of stocks.3.In the context of bull and bear markets,the relationship between the shareholding pledge rate of major shareholders and the excess returns of stocks is different.4.In the context of bull market and bear market,the relationship between the pledge ratio of the major shareholder's restricted shares and the stock excess return is the same.Finally,on the basis of theoretical analysis,this paper empirically verifies the above hypothesis through the combination of event research method and multiple regression analysis,and puts forward conclusions and suggestions based on empirical evidence.In addition to verifying the four hypotheses put forward,the study also found through empirical research: 1.In the context of bull market or bear market,the time when the impact of large shareholder equity pledge on stock excess returns reaches the maximum is the announcement of equity pledge announcement 5 Up to 10 days.2.In the context of a bull market or a bear market,the equity pledge of large shareholders of listed companies in the financial industry will have a positive impact on the excess returns of stocks.Based on the conclusions drawn from empirical research,this paper proposes to three subjects.The regulator should require the listed company to disclose the complete information of the equity pledge in advance.The shareholders of the listed company should choose the equity pledge as the financing of the company in different market backgrounds.Tools,and investors in different market contexts to differentiate the major shareholders from the equity pledge of listed companies.