| Shareholders financing through the equity pledge has become a very common phenomenon in the Chinese capital market,especially the large shareholders with a higher proportion of equity.The equity pledge has gradually become regular financing means of shareholders.They frequently pledge their holdings to get the money in order to convert "economic stock" into "economic energy" through equity pledge.From the shareholders of pledging equity,this provides a convenient and quick financing channel for shareholders,which is conducive to the effective allocation of resources.And from the point of the company,equity represents equity ownership in a company,is a comprehensive right in return for shareholder's investment.Whether the behavior of the large shareholders equity pledge will have an impact on the company itself? Although it is the behavior of large shareholders to exercise their rights and it is not directly related to the corresponding company.But equity pledge of large shareholders may be important influence on their behavior motive and behavior patterns.And in the listed companies in our country,the stakes are concentrated and a phenomenon of sole majority shareholder is more prominent.Substantial shareholder has an important influence on the operation and management of listed companies,so the behavior motive and patterns of equity pledge for large shareholders will directly impact on the influence of the listed company itself,which could make equity pledge of large shareholders will affect the financial behavior of listed companies and business decisions.The object of equity pledge is the equity of the company.As a kind of collateral,the equity value is closely related to the creditor of the pledgee and the shareholder of the pledger.The equity value is the concern of Equity pledge parties.For listed companies,the value of equity depends on its share price,which is closely related to the company's earnings.The earnings management behavior of the company will directly affect the company's earnings,so whether it will affect the company's earnings management behavior.The process of equity pledge can be divided into the pledge before and during the pledge,earnings management mode can be divided into accrued earnings management and the real earnings management.Major shareholders equity pledge will influence on companies' earnings management has the characteristics of period and the way choice.The answers to the above questions need further theoretical research and practical testing.This paper will study the impact on company earnings management of the equity pledge of substantial shareholders.First of all,this article will review and summarize the existing literature,define research perspectives and direction,and study the relationship between the large shareholders equity pledge and corporate earnings management in stages,in different ways,in distinguishing the nature of equity.Secondly,based on relevant theories and combined with the reality of our country,we carry out theoretical analysis and set up the framework and logical structure and propose the research hypothesis of this paper.Then this article selects the A-share non-financial listed companies of the Shanghai and Shenzhen stock markets from 2010 to 2017,on September 30,the quarterly data as the research sample,and conducts basic statistical analysis,multiple regression analysis and further analysis,in order to empirically test impact on company earnings management of the large shareholders equity pledge.In this paper,the following research conclusions:(1)Under the substantial shareholder equity pledge,the substantial shareholders significantly promote positive accrued earnings management before equity pledge,but the real earnings management does not have a significant change.In order to achieve the pledge financing and financing as much as possible,substantial shareholders would increase accrued earnings management,which is convenient,quick and easy,so that the company's earning condition become good and stock price is in a higher level.(2)During the period of equity pledge,large shareholders will also encourage the company to carry out earnings management in order to avoid the risk of cover positions and forced liquidation.But because of the existence of the pledgee,the pledgee would act as a supervisor in order to maintain their own interests.So substantial shareholders would reduce positive accrued earnings management which is more likely to be found and implement real earnings management that is less-visible.While achieve surplus manipulation and market management,they could cater to pledgee's request.(3)The equity nature has an important influence on the relationship between the equity pledge of major shareholders and earnings management.When the major shareholders are non-state-owned,the accrual earnings management shall be enhanced before the pledge,and there are two types of earnings management alternatives in the pledge period.When large shareholders as state-owned property,as a result of the existence of soft budget constraint,major shareholders will not increase positive accrued surplus management before the pledge,also won't increase the real earnings management.However,after the realization of the equity pledge,because of the risk of replenishment and forced liquidation and the restriction of the pledgee,substantial shareholders will reduce the positive accrual earnings management and turn to increase the real earnings management.(4)Through the further analysis,under the pledge of large shareholders,the financing demand of large shareholders will have a significant impact on the earnings management of the company.Finally,based on the problems and conclusion found in the research process,some policy suggestions are put forward from three aspects: the company's stakeholders,the company itself and the regulatory layer.And we prospect the research of equity pledge.We hope this article can improve the relevant systems of the equity pledge in our country,prevent relevant risks and promote the further study of the equity pledge. |
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