Research On Factors Influencing Pledge Proportion Of Controlling Shareholders Of Listed Companies

In recent years,the scale of equity pledge in China's A-share market has increased rapidly.By the end of 2019,the market value of pledged Stocks in A-share market reached 4.6 trillion yuan,accounting for 9.02% of the total market value.The controlling shareholders of listed companies objectively have financing needs for themselves or the company,but too high a proportion of pledge may lead to forced liquidation,lead to the risk of stock price fluctuation and control transfer,and damage the rights and interests of other investments.From 2015 to 2018,due to the impact of the stock market decline,a large number of listed Companies' share prices approached or even fell below the flat line,causing the stock prices of relevant companies to flash crash.The hidden systemic risks of equity pledge were quickly exposed,and attracted the attention of the regulators.Therefore,the equity pledge of listed companies has become a hot research topic,and controlling the equity pledge risk has become an important topic.Different from most papers that study the negative consequences caused by equity pledge from the micro perspective,such as corporate performance decline and stock price crash,this paper mainly studies the causes of equity pledge ratio and analyzes the influencing factors from both macro and micro perspectives.Considering the fact that the proportion and risk of controlling shareholder equity pledge are highly relevant,this paper directly studies the equity pledge proportion of controlling shareholders of listed companies in China,selecting the market interest rate,money supply growth,economic growth and stock market performance as macro factors,and the relative valuations of listed companies,debt ratio,equity concentration and organization form as micro factors.This paper collects annual data from 2013 to 2019 with 3526 effective samples and uses empirical method to explore the impact the typical macro and micro economic variables on equity pledge proportion.This paper comprehensively considers the research results of domestic and foreign markets,combined with China's environment,putting forward hypotheses about the influencing factors of the shareholding pledge ratio of controlling shareholders,and then uses a fixed effect model to test the hypotheses empirically.The empirical part introduces micro variables and macro variables for multiple linear regression,and then draws a conclusion.It is found that the debt ratio,equity concentration and relative market value of listed companies have significant influences on the pledge ratio of controlling shareholders.Compared with private listed companies,the pledge proportion of controlling shareholders of state-owned listed companies is significantly lower.In addition,after adding macro factors into the model,it is found that economic growth,stock market performance,market interest rate and money supply growth rate also significantly affect the equity pledge proportion of controlling shareholders.Therefore,it is not only the micro-factors of listed companies themselves that influence the pledge behavior of listed companies' controlling shareholders,but also some macro-economic factors.In order to control the risk of controlling the equity pledge,the paper puts forward some corresponding countermeasures and Suggestions.