Research On Market Value Management Of Listed Companies Based On Equity Pledge Of Major Shareholders

Nowadays,the cruelty of capital market competition makes listed companies have to seek more financing channels in order to develop.Compared to other financing methods,equity pledge is favored by many listed companies and shareholders because of its unique advantages of fast financing speed and no influence on control rights,while they enjoy this kind of financing advantage,it is easy to ignore the huge risks hidden behind it.As far as the current domestic capital market is concerned,the number and proportion of listed companies with equity pledge remain high,in this case,once the share price falls,there is a risk of closing the positions,it not only increases the risk of bankruptcy of listed companies,more serious or even trigger systemic risk of the entire market.In recent years,China has greatly encouraged listed companies to improve their own market value management system,so that stock prices can truly reflect the company's intrinsic value,and the stock price is an extremely important factor in the risk of equity pledge.Benign market value management can improve the stock price to avoid the risk of control transfer caused by equity pledge,therefore,based on the risk of equity pledge,listed companies have full motivation and demand for market value management.In this paper,taking Geo-jade Petroleum as an example,mainly based on the perspective of equity pledge market value management research.First of all,combined with basic theory to analyze practical cases,this paper analyzes the motivation of equity pledge of major shareholders and the risk transfer path of equity pledge.Secondly,this paper analyzes the influence mechanism of moral hazard,control right transfer risk,financial risk and market risk brought by equity pledge on the company,then avoiding the negative impact of these risks becomes the motivation of market value management of listed companies.And then,Geo-jade Petroleum use different market value management strategies from three paths: information disclosure can be used to attract small and medium investors in the short term;in the medium term,earnings management can be manipulated to whitewash the financial statements;in the long run,capital operations are needed to stabilize share prices.In the end,this paper analyzes the effectiveness of these market value management methods in dealing with the risk of equity pledge and provides some suggestions for listed companies to avoid the risk of equity pledge.The innovation point of this paper is to clarify the transmission path of equity pledge risk before evaluating the risk problem,and combed the relationship between the equity pledge of major shareholders and the market value management of listed companies,the mechanism of influence of equity pledge on market value management has been perfected.This paper looks at the risk from the perspective of listed companies,finally,some suggestions are given for other enterprises in similar situations,which can be used for reference when they are faced with equity pledge risk,so as to ensure the sustainable and stable development of listed companies.