Study On The Impact Of Stock Price Volatility And Financing Constraints On The Major Shareholders' Behavior Of Stock Pledge

Many factors inside and outside the company and the personal characteristics of controlling shareholders reflect pledge motivation.This paper attempts to combine the internal and external factors such as financing constraints and stock price fluctuations,and study the behavior of shareholders' stock pledge,then discusses the regulating effect of shareholder control on the above two factors.Based on the data of listed companies in Shanghai and Shenzhen Stock Exchange,this paper builds pooled OLS and Probit model,comprehensively testing the motivation of controlling shareholders'stock pledge behavior from the perspective of financing constraints and stock price fluctuations.Specifically,it includes the correlation about the the financing constraint KZ index,the standard deviation of the stock return rate with the shareholder's pledge,also,the regulating effect invloved.The empirical research shows that the stock price fluctuation is an important external factor affecting the stock pledge behavior of the shareholders.When the stock price volatility is high,the pledge behavior is more moderate,and the higher cash flow right weaken the negative correlation between the two variables.The financing constraint is an important internal factor affecting the stock pledge behavior of shareholders.When the degree of financing constraint is high,the pledge behavior is more radical,and the higher cash flow right enhence the positive correlation between the two variables.The reason of regulating effect is that shareholders with low cash flow right have strong encroachment effect while shareholders with high cash flow right have strong encouragemeng effect.This paper explores the conclusion about the relationship between the control of shareholders and stock pledge,also enriches the behavior research of stock pledge,explaining the behavior of controlling shareholders from the perspective of risk preference.The conclusion helps the regulator to improve the ex ante and ex post regulation of stock pledge and provides suggestions for the financial institution about the stock pledge transaction.