Pledge Of Equity Rights Of Major Shareholders,Corporate Life Cycle And Real Earnings Management

In recent years,equity pledge has been widely used in the capital market and has gradually become the focus of academic attention.According to statistics,up to May2018,among A-share listed companies,3425 companies have done equity pledge business,accounting for 97.30%.The main reason why equity pledge is sought after by many listed companies is that it converts static equity into available financial resources,meets the financing needs of the company while maintaining the control of large shareholders,and broadens the financing channels of the company.But if the stock price falls,the pledge of shares may make the control of the company change ownership.In order to avoid risk,large shareholders and management may manipulate earnings upward by using real earnings management to enhance the stock price.However,the existence of real earnings management will damage the interests of small and medium-sized shareholders,which is not conducive to the healthy development of the capital market.Therefore,the pledge of large shareholders' equity has become the focus of the capital market,and the relationship between the pledge of large shareholders' equity and real earnings management has become a hot topic in academic research.At the same time,as individuals with life cycle,enterprises have different conditions and external environment at different stages.Based on this,this paper chooses A-share listed companies with large shareholders' equity pledge behavior from2013 to 2017 as the research object,and introduces enterprise life cycle variables,respectively,to empirically examine the relationship between large shareholders' equity pledge and real earnings management,the relationship between enterprise life cycle and real earnings management,and the regulatory role of life cycle on the relationship between large shareholders' equity pledge rate and real earnings management.Proven.The results show that:(1)There is a significant positive correlation between the pledge rate of major shareholders' equity and the level of upward real earnings management.(2)In the enterprises with large shareholders' pledge behavior,the life cycle directly affects the real earningsmanagement level of the enterprises.Compared with the mature period,the real earnings management level of the enterprises in the growing and declining period is higher.(3)Part of the life cycle regulates the relationship between the equity pledge rate and the real earnings management of large shareholders.Compared with the mature period,the growth period strengthens the positive correlation between the equity pledge rate and the real earnings management.Compared with the mature period,the recession period has no significant influence on the relationship between the equity pledge rate and the real earnings management.Based on the above conclusions,this paper proposes that enterprises should improve corporate governance,including the establishment and improvement of risk assessment system,giving full play to the role of board of directors,board of supervisors,optimizing the company's ownership structure and formulating reasonable equity pledge scheme;giving full play to the role of pledgee supervision,safeguarding the healthy development of capital market;Giving full play to social supervision,especially public opinion supervision,and safeguarding the interests of small and medium-sized investment;While strengthening the supervision of equity pledge business,government departments should also pay attention to key enterprises and guide them to develop healthily and sustainably.