A Study On The Impact Of Pledge Of Large Shareholders Of Listed Companies On The Growth Enterprise Market On Earnings Quality

With the continuous development of China’s capital market,equity pledge has gradually become a popular way of financing.From 2014 to 2018,the number of companies with equity pledge in gem increased from 141 to 427,with an average growth rate of 40.57%.In 2018,the total number of Pledged Shares of GEM listed companies reached 19.01 billion,of which the majority shareholders’ equity pledge is the most common.A direct result of the pledge of large shareholder’s equity is to introduce the role of pledgee as an external supervisor,in addition,tbe listed companies,regulators and auditors and other external regulators that have the pledge of large shareholder’s equity are more strict in the supervision and audit of their perfonnance of duties.Changes in the external regulatory environment will have an impact on the earnings quality of listed companies.Based on the summary of relevant research and achievements at home and abroad,this paper defines the meaning of gem,equity pledge and earnings quality,and analyzes the status quo of equity pledge and earnings quality in gem.Using principal-agent theory,signaling theory and decision-making usefulness theory,this paper analyzes the relationship between equity pledge and earnings quality,and puts forward research hypotheses;select and define the explained variables,explanatory variables and control variables,and build a multiple regression model;take 2014-2018 GEM listed companies as the research sample,empirical research on the impact of pledge of major shareholders’ equity on earnings quality of GEM listed companies.The results show that:(1)under the same other conditions,the size of pledge of controlling shareholders is positively reated to earnings quality;(2)the frequency ofpledge is positively related to earnings quality;(3)the length of pledge period is positively related to eamings quality.Finally,the paper puts forward relevant suggestions from four angles of investors,listed companies,regulators and plcdgees,aiming to improve the earnings quality of GEM listed companies and promote their healthy and healthy and stable development.