The Impact Of Stock Pledge On Stock Price Crash Risk

In recent years,pledge of stock rights has gradually become an important financing tool for listed companies.With the increasing of the scale and ratio of pledge,the risk is also rising.Particularly in 2018,the stock pledged by Listed Companies in China frequently broke out,and many shareholders' equity was frozen by judiciary.A lot of listed companies with a high proportion of pledge have a vicious cycle of "decline-stock closing-decline".The impact of stock pledge on the risk of stock price collapse has attracted many people's attention.This paper takes the data of A-share listed company from 2010 to 2018 as the initial sample,and makes an in-depth study on the impact of Stock Pledge on the risk of stock price collapse.In the aspect of theoretical analysis,this paper expounds from three aspects: information asymmetry theory,private benefits of control and principal-agent theory.It tries to analyzes the impact path of Stock Pledge on the risk of stock price collapse in detail.This paper also explores the impact of Stock Pledge on the relationship between Stock Pledge and the risk of stock price collapse from the perspective of equity balance and the nature of enterprises.After excluding some sample data,this paper make an empirical analysis of the remaining 11611 groups of sample data by stata15.1.The empirical results show that:(1)For the listed companies with Stock Pledge,the risk of stock price collapse is greater,and the higher the proportion of stock been pledged is,the higher risk it will face.(2)For companies with equity pledge,a low degree of equity balance will reduce the risk of stock price collapse in the future.(3)For non-state-owned listed companies,the risk of stock price collapse is greatly affected by Stock Pledge.Instead of that,for the state-owned listed companies,the risk of stock price collapse is not significantly affected by Stock Pledge.Since 2018,China has gradually increased the supervision of Stock Pledge.They adjusted the regulatory provisions constantly in order to resolve the Stock Pledge crisis and ensure the stable operation of market.This paper analyzes the impact of Stock Pledge on the risk of stock market collapse,and explores the factors that may resolve its negative effects.The research results will help us to further deepen ourunderstanding of Stock Pledge,and explore better regulatory methods to stabilize the financial market and give full play to its financing tool attributes.