The Impact Of Stock Pledge On Stock Price Return Rate Of Listed Companies

The development time of equity pledge financing in China is relatively short.Most of the current academic research on equity pledge theory focuses on the relationship between equity pledge and enterprise management rights,agency and legal system.Empirical research mainly focuses on the relationship between equity pledge and stock price collapse risk,and the relationship between equity pledge and listed company behavior such as dividend distribution and information disclosure.This paper studies the relationship between equity pledge financing and stock price return of listed companies by combining normative research and empirical quantitative research.This paper innovatively studies the impact of equity pledge on listed companies from the perspective of earnings;at the same time,on the basis of previous literature,this paper introduces the variable of the number of unresolved equity pledge in that year to measure the relationship between equity pledge and stock price return more comprehensively from the incremental perspective;moreover,because the pledge rate of Listed Companies in different sectors is different and financing constraints are different,this paper divides the board into two parts.In order to better understand the impact of equity pledge financing on stock price returns,equity pledge is divided into groups.This paper finds that equity pledge will reduce the return rate of stock price,and the higher the proportion of equity pledge and the more the number of unresolved equity pledges occur in that year,the more obvious the negative effect is.At the same time,the results of group study show that the negative effect is more obvious in non-state-owned listed companies and more obvious in GEM.Based on this study,the regulatory authorities should pay close attention to the scale of equity pledge of listed companies and improve information disclosure;listed companies should rationally use equity pledge financing tools to keep the proportion of equity pledge under control and reduce the frequency of pledge;investors should identify risks and reduce losses through abnormal equity pledge behavior of Listed Companies in time;The company’s equity pledge should refer to the situation of GEM to adjust in time.