Research On The Influence Of Equity Pledge Of Major Shareholders On Corporate Value Of Gem Listed Companies

In recent years,with the rapid development of China’s equity trading market,equity pledge financing has been favored by both financial institutions and major shareholders of listed companies.However,the equity pledge risk accumulated by major shareholders in the early stage has caused a great impact on the stock price of listed companies,and even seriously damaged the corporate value of enterprises.Most gem listed companies are high-risk private science and technology enterprises.Due to the high frequency pledge of shares held by their major shareholders,they are faced with more default risk of equity pledge,resulting in losses to other stakeholders of the company.Therefore,it is necessary to study the impact of equity pledge of major shareholders on enterprise value of gem listed companies,and to improve the attention to equity pledge of major shareholders.Therefore,this article is based on the gem listed company shareholder equity pledge,a typical jinlong machinery object as a case,combined with the company announcement and other public information,related literature,summed up the equity motivation,and mainly using event study method and factor analysis to evaluate different pledge period jinlong mechanical and electrical major shareholders of the listed company value of impact.Through theoretical deduction and case analysis,this paper finds that the negative effect of equity pledge of major shareholders on the corporate value of listed companies is more significant,and with the increase of the scale and degree of equity pledge,the corporate value presents a downward trend.In addition,major shareholders occupy the absolute controlling position,and the actual use of equity pledge financing can affect the governance structure and operating efficiency of listed companies,cause abnormal fluctuations in external stock prices,and thus cause changes in the market value and book value of listed companies.Therefore,frequent and high proportion of pledge of equity by major shareholders is more of a signal to convey adverse information.It is necessary to build a long-term mechanism to reduce the risk of pledge of equity from listed companies,pledgee and regulatory authorities,strengthen overall risk management,and reduce the losses caused by the default of pledge of equity.