Research On The Influence Of Controlling Shareholders’ Equity Pledge On Enterprise Market Value Management

In recent years,equity pledge financing has become a popular financing method for controlling shareholders of listed companies because of its flexibility,efficiency,and convenience.According to statistics,as of February 14,2020,a total of 3037 listed companies in the A-share market have pledged equity.The total proportion of A-share pledges reached 8.01%,a total of 40,700 pledges,and the total number of shares pledged was 572.4 billion shares.The total market value reaches4.67 trillion yuan,accounting for approximately 7.12% of the total market value of A shares.However,equity pledge financing also has its unique risks.After the controlling shareholder pledges equity,if the stock price fluctuates greatly or even falls to the closing line,the equity pledged by the controlling shareholder will face the risk of being forced to close the position and control the controlling shareholder Rights and the normal production and operation of enterprises have a serious impact.In order to prevent the above situation,whether the company with equity pledge will take active and effective means to manage market value.While enhancing the company’s ability to prevent risks through market value management,what measures will be taken to prevent large fluctuations in stock prices,which is worth studying.As an important means of governance of listed companies,market value management plays a key role in stabilizing stock prices and maximizing shareholder wealth.This article uses the 2007-2018 Shanghai and Shenzhen A-share listed companies as a research sample,combines equity pledge with corporate market value management,studies whether equity pledge has an impact on market value management,and from the perspective of earnings management and information disclosure quality To explore specific ways to influence the equity pledge on market value management.The results of the study show that equity pledges have a significant negative impact on the market value of companies,so companies with equity pledges will take more active measures to manage market value;based on the analysis of intermediary effects,earnings management and information disclosure quality will significantly affect the market value of companies Management has a significant part of the intermediary role.In terms of cases,this article selects Meijin Energy,an enterprise that has actively undergone transformation and upgrading in recent years,transforming from a single coal coking product to focusing on coal coking products,and vigorously developing hydrogen energy batteries and new materials projects.In 2018,the company’s development required a high frequency and high proportion of equity pledges,which caused the stock price to fall to the closing line,and the market value was seriously affected.Therefore,the case analysis aspect of this paper explores the fluctuation of stock prices and excess returns under specific events through the event research method.From the perspective of information disclosure in specific cases,companies with equity pledges will take more active measures to conduct market value management and combine specific circumstances to Relevant suggestions.