Research On The Market Value Management Behavior Of Listed Companies Under The Background Of Equity Pledge

With the establishment and development of joint-stock companies in China,ownership and management rights are separated.The shareholders of listed companies do not directly participate in the daily operation and management of the company,but the controlling shareholders have the control rights of the company.They can influence the stock price of listed companies by participating in the major decisions of listed companies,so as to make profits for themselves.Due to the imperfection of China’s capital market,listed companies can achieve the maximization of enterprise value through the corresponding market value management behavior.Market value management is becoming more and more popular in the capitalist market,and many listed companies are also gradually carrying out the relevant practice and exploration of market value management.At the same time,some of the listed company due to the enterprise internal management problems in itself,cause during this period show an increased market management behavior,for example,the controlling shareholders of listed companies pledge equity of listed companies,integrated into the capital,etc.,to have to increase the market value of listed companies management behavior of the strength and scope,to maintain company’s share price and company image.In this case,it is easy to lead to the appropriation of capital by controlling shareholders,illegal use of capital,and encroachment on the interests of listed companies and minority shareholders.At the same time,some listed companies use excessive market value management to conduct market manipulation and other phenomena,which seriously disturbs the order of the capital market.Research related data found that the use of market value management of listed companies can optimize the company’s share price,reduce the difference between in-house value and market value,through the use of legal and compliant management methods to maximize the value of the company.The primary purpose of market value management of listed companies is to optimize the capital structure,implement rewards and punishments,and realize the continuous growth of corporate value through capital operation,merger and acquisition,equity incentive,investor relations management and other legal methods.However,excessive market value management is also detrimental to the long-term development of listed companies.From the motive point of view of market value management,after the equity pledge of listed companies,it is necessary to promote the stock price rise through market value management means,avoid the risk of transfer of control,and even increase the amount of financing.Through frequent trading of listed companies’ stocks,controlling shareholders can increase their holdings at low levels and sell off at high levels to bring them certain benefits.Such behavior may increase the stock price of the listed company in the short term and bring the false impression of good operating ability to the outside,but in the long run,the management defects of the listed company and shareholders’ manipulation of the listed company will eventually bring negative effects to the listed company.From the perspective of economic consequences,market value management often only follows the rapid rise of stock price in the short term,while neglects the growth of internal value of the company.The emergence of market value management behavior leads to the rapid decline of stock price,which seriously damages the interests of small and medium shareholders and the long-term development of the company.Listed companies must make proper use of market value management,focus on increasing the internal value of the company,aim at the long-term and stable growth of market value of the company,and carry out market value management through legal means.This paper analyzes the market value management behavior of listed companies by taking the equity embezzlement event of Yaxing Chemical as a case.This paper analyzes the excessive market value management behavior of Yaxing Chemical from three aspects of the motivation,path and economic consequence of market value management.Finally,through the study of market value management behavior of Yaxing Chemical,it will bring some enlightenment for market regulators,investors and listed companies.