| Since 2012,equity pledging has been developing rapidly in the A-share market as a new type of financing method,which has become one of the most popular financing methods for listed companies because of its high efficiency,flexibility,wide source of funds and low financing costs.However,in recent years,as the Shanghai and Shenzhen stock markets have continued to fall,the risk of equity pledges has been on the rise and has led to the risk of liquidation of private listed companies that carry out equity pledges.Once the pledged shares are forcibly closed out,not only is there a possibility of a change in the controlling shareholder or beneficial owner of the listed company,but also a greater impact on its business performance and other aspects,which may even harm the vital interests of investors.With the development of technology and changes in lifestyles,the external monitoring effect of the media has gradually taken on unique advantages.In the current environment where the internal governance of companies is not perfect,it is particularly significant whether media attention will have a certain impact on the shareholder’s equity pledging behaviors and whether a high degree of external media attention can monitor the equity pledging behaviors and thus have an impact on the volatility of the company’s share price,which is also the focus of this thesis’ s research This is the focus of this thesis.The thesis uses the event study method mainly combined with the case study method to launch a research analysis in the form of a comparative case study.The thesis selects listed companies in the same industry,namely Great Wall Motor with high media attention and Guanghui Automobile with low media attention in an attempt to investigate whether there is a significant difference between the information on equity pledging behavior and the share price of the case companies.Firstly,this thesis compares and summarize the relevant literature at home and abroad,on the basis of which the mechanisms of media attention,equity pledges and company share prices are analyses.Secondly,through the collection of data on equity pledges of two case companies,the impact of announcements on company share prices under media attention is investigated separately.Finally,through the case study analysis,it is found that higher media attention on equity pledging behaviors will bring more significant excess returns to the company’s share price,which can relatively inhibit the value of the company through equity pledging behaviors by major shareholders.This thesis’ s innovative point of research is that there is little literature on the impact of media attention on equity pledge financing behavior,and even less on the impact of media attention on share prices,using equity pledges as a mediating mechanism.This thesis explores these issues in depth,and these core questions reflect the novelty of this thesis’ s research perspective.Based on the findings of the study,some feasible suggestions are made for the proper use of external monitoring mechanisms by the media and the use of media monitoring functions by the government to manage corporate equity pledging behavior. |
