Controlling Shareholder's Equity Pledge,Analyst's Concern And Information Disclosure Quality

With the continuous improvement of the management process and legal system of equity pledge,the phenomenon of equity pledge by the controlling shareholders of listed companies has gradually increased in recent years.In 2014 and 2015,equity pledge experienced explosive growth with the help of leverage bull market.However,there are also many risks in equity pledge,especially when the stock price falls beyond the warning line,the pledgor needs additional guarantee,or even faces the risk of forced liquidation and transfer of control.Due to the risk of transfer of control in case of stock price collapse caused by equity pledge,controlling shareholders have the ability and motivation to conduct market value management to avoid this risk during the period of equity pledge,and information disclosure as one of the means of market value management has become a possible choice.Securities analysts as a indispensable role in capital market,rely on their professional knowledge and proprietary information acquisition channel,the controlling shareholders of listed companies equity pledge information play the role of information medium,alleviate the information asymmetry between the companies and investors,for the information disclosure of listed companies at the same time can also play a role in supervision.Therefore,research on the controlling shareholders of listed companies equity pledge,analyst focuses on the influence of the quality of information disclosure and analysts may be between the controlling shareholder equity pledge and information disclosure quality role,for a comprehensive understanding correct equity pledge and carries on the effective regulation and protect the interests of investors,has important theoretical value and practical significance.This paper selects listed companies in Shanghai and Shenzhen A stock markets as data samples from 2014 to 2018,through constructing multivariate regression model,the controlling shareholder equity pledge on the quality of the company's disclosure,analysts focus on the quality of the company to disclose and analysts pay attention to the company and controlling shareholder equity pledge of action between information disclosure quality has carried on the empirical research.This paper finds that the pledge of controlling shareholder's equity will reduce the quality of information disclosure of listed companies.The quality of information disclosure of companies with controlling shareholder's equity pledge is lower than that of companies without controlling shareholder's equity pledge.The higher the proportion of controlling shareholder's equity pledge,the lower the quality of information disclosure.Analysts focus on improving the level of information disclosure of listed companies and reducing the level of information asymmetry between companies and investors.At the same time,analysts pay attention to the negative effect of equity pledge of controlling shareholders on the quality of corporate information disclosure and alleviate the negative effect of equity pledge of controlling shareholders on corporate information disclosure.Based on the research results,this paper puts forward relevant Suggestions from the perspectives of listed companies,regulators,analysts and investors.