A Study On "Emptying" Behavior Of Major Shareholders Under Stock Pledge

In recent years,affected by the macro environment,the development of some enterprises is limited,which further compresses the profit space of enterprises,and leads to the phenomenon of increasing the financing difficult financing cost of enterprises.For private enterprises,this financing is difficult to finance expensive problem is particularly prominent.Under this background,various financing methods in the financial market are gradually enriched,and equity pledge has become the preferred financing method for large shareholders of private enterprises because of its characteristics of fast realization and low threshold.However,with the capital market adjustment in 2018,the case of equity pledge leading to thunderstorm continues to occur,and the risk and malpractice of equity pledge begin to be exposed.Although equity pledge is the personal behavior of large shareholders,it will also have a positive or negative impact on the company,in which the negative impact of equity pledge is especially worthy of attention and research.While the scale of equity pledge is expanding,the laws and regulations for equity pledge need to be improved.Equity pledge deepens the separation of control right and cash flow right,and makes it easier for large shareholders to produce a tendency of emptying.At the same time,the capital obtained by the equity pledge reduces the cost of the large shareholderemptying the company,which establishes some connection between the large shareholder equity pledge and the emptying behavior.Under the condition of equity pledge,the means of emptying by large shareholders also tend to diversify Its hollowing behavior has seriously damaged the interests of minority shareholders and seriously affected the normal operation of the company.Therefore,it is necessary to study the internal relationship and mechanism between equity pledge and emptying company's behavior,and to curb the emptying behavior of large shareholders under the background of equity pledge.Taking Gao Sheng Holdings as an example,this paper deeply analyzes the relationship between equity pledge and emptying behavior of large shareholders.First of all,through the analysis of the business development of Gao Sheng holding,the change of controller,and the basic situation of equity structure,it is found that the actual controller of Gao Sheng holding changes frequently.At present,after the actual controller Wei Zhenyu holding company,the company's equity structure is relatively concentrated,and the utility of equity checks and balances is weak.Secondly,the paper analyzes the process of equity pledge of major shareholders in detail and studies the influence of equity pledge by means of event research.The research shows that the separation of the two rights increases after the equity pledge,and the equity pledge has a significant negative effect on the stock price of the company Impact.Thirdly,the paper analyzes the index of hollowed-out degree before and after the equity pledge,such as related guarantee,non-operating funds,etc.The residual measurement model shows that the company has overinvestment after the equity pledge,and proves the fact that the actual controller emptied the company by various means.On this basis,the paper combs out the three influence paths of equity pledge on hollowed-out behavior.After that,using A listed companies as a sample,the correlation between equity pledge and hollowed-out behavior is analyzed empirically by panel regression.The research shows that the company with controlling shareholder equity pledge has more serious hollowed-out degree,and the higher theproportion of large shareholder equity pledge,the more hollowed-out degree to the company the larger,and equity checks and balances have a significant inhibitory effect on the hollowed-out behavior under the background of equity pledge.Finally,in order to prevent the hollowed-out behavior under the background of equity pledge,combined with the reason and influence path of the hollowed-out behavior of Gao Sheng holding under the background of equity pledge,the relevant countermeasures and suggestions are put forward from two aspects: internal checks and balances and external supervision.