A Study On The Relationship Between Equity Pledge,Ownership Structure And Earnings Management Of Large Shareholder In Listed Companies Of GEM

In recent years,equity pledge financing is becoming more and more popular with the listed company because of its convenience.China's GEM listed companies are mainly private enterprises,with a high degree of ownership concentration.Large shareholders actually control the company's decision-making power,and its equity pledge has attracted more and more attention from the society.As an important index to measure the performance of a company,Accounting Earnings have an important influence on the stock value of the company.Therefore,it is of great practical significance to study the relationship between the equity pledge and the Earnings Management of the large shareholders of the GEM listed companies.This paper adopts the method of combining normative research and empirical research.Based on reading existing literature on related theory,firstly,the related theories on the earnings management,equity pledge and ownership structure to sort out;secondly,the logical relationship of earnings management and the GEM listed company equity pledge and ownership structure status and three subjects were analyzed;thirdly,based on reading the literature and theoretical analyses.Put forward the research hypothesis and select an empirical model to test the hypothesis;finally,draw conclusions and put forward relevant suggestions and points out the limitations and future research directions.This paper selects the financial data of the GEM 2010 to 2016 large shareholders equity pledge behavior of listed companies as research samples,Through the modified Jones model and the Roychowdhury model,the impact of the earnings management and the real earnings management of the equity pledge of large shareholders is studied.The study found that major shareholders of listed companies pledge widespread earnings management(including Accrued Earnings Management and Real Earnings Management),and there should be differences in earnings management and real earnings management;shareholder equity pledge of listed companies should decline in earnings management,improve the real earnings management;the introduction of equity structure variables.Further study found that the listed company's equity balance degree can inhibit the major shareholder equity pledge after the real earnings management behavior;but the concentration of shareholding and earnings management is positively correlated.Therefore,in the face of the stock market ups and downs and the equity pledge bring earnings management risk,as investors pay attention to shareholder equity pledge of listed companies,be cautious in making investment decisions;to further improve the governance structure of listed companies,equity pledge to strengthen information disclosure;regulatory agencies to improve the relevant laws and regulations,norms of equity the pledge of equity pledge behavior and strengthen risk control.