Equity Pledge And Market Value Management Of Controlling Shareholders

Equity pledge is a kind of loan secured with the equity of listed companies as collateral.After the reform of non-tradable shares pledge has become an important way for the shareholders of listed companies to refinance.Equity pledge financing has the advantage of being more convenient than ordinary bank loans,and can revitalize the stock price resources of listed companies,so it is favored by shareholders.When the stock price is lower than the specified warning line or reaches the warehouse line,the pledgee will ask the pledgee to cover the warehouse or pay in advance.If the shareholders of the pledgee are unable to repay,the pledge right will be realized,the equity will be transferred,and the pledgee may also face the transfer of control of the company,which is the inherent risk of the equity pledge.And this risk will lead to the enterprise has the incentive to carry on the market value management to protect the stock pledge,maintain the market value,reduce the risk of control transfer of the stock pledge.Since the Shanghai stock exchange and shenzhen stock exchange in 2013,a stock since the pledged repo,the listed companies in our country and enterprises for equity pledge financing has become the norm,with the Shanghai and shenzhen stock exchange's website,according to data in 2018,only in the territory of China listed companies equity pledge has more than 2000,and accounted for about 60% of the number of listed companies in China.Not only that,at the same time of large-scale pledge,frequent pledge is also common.Some companies even pledge dozens of times in a year,which has a great impact on the market value of the company.In this context,it is particularly important to study the management of pledge and market valueThis paper collects the manufacturing listed companies in Shanghai and shenzhen stock markets whose stock rights have been pledged from 2010 to 2017,and then culling and screening them to some extent.On the basis of data integrity,this paper combines relevant theoretical knowledge and research hypothesis to conduct research.The results show that the financing management of manufacturing enterprises is improved and the market value management is strengthened under the pledge of the controlling shareholders.However,if the equity pledge is too frequent,it will increase the risk of the enterprise and reduce the performance of market value management.In addition,due to the different attributes of Chinese enterprises,the results show that there is a higher correlation between equity pledge and market value management of private listed companies in the case of classified research.In the end,the paper summarizes the foregoing and extracts relevant arguments to form a conclusion.On the basis of the research conclusion,the paper puts forward relevant Suggestions on equity pledge and market value management,and looks forward to the direction of further research.