Empirical Study On The Impact Of Stock Pledge On Stock Collapse Risk

Equity pledge refers to a method by which a shareholder pledges its shares to a financial lender to obtain financing,and is widely used by the controlling shareholders of listed companies.However,because equity pledge financing is very sensitive to the market value of the company's stocks,the deepening of the pledge has a certain impact on stock price volatility and the risk of stock crashes.This paper takes the A-share listed companies with controlling shareholder equity pledges from 2014 to 2018 as a research sample,and incorporates information asymmetry theory and principal-agent theory into theoretical analysis.It comprehensively applies case analysis and empirical research methods to explore the pledge behavior of controlling shareholders of listed companies.The relationship between the stock price crash risk and the underlying mechanism.Through empirical research,it is found that:first,the controlling shareholder's pledge of equity will significantly increase the risk of stock price crash;second,the attention of institutional investors has an effect on the positive relationship between the largest shareholder's equity pledge and the stock price crash;third,the higher the concentration of the largest shareholder's equity,the lower the risk of company's stock price crash;fourth,compared with state-controlled listed companies,the positive effect of the equity pledge of large shareholders in non-state-controlled listed companies is more obvious.According to the above research results,listed companies need to improve corporate governance,do liquidity management,and use equity pledge financing methods appropriately;securities firms must conduct pre-qualification,post-quality,and post-quality approval and follow-up management when conducting business;regulators need to strengthen equity pledges the disclosure of key information such as financing uses,strengthened risk disclosure and prediction,reduced the degree of information asymmetry,and effectively protected the interests of listed companies and investors.