Research On Market Value Management In Controlling Shareholder’s Equity Pledge

The equity pledge has the characteristics of efficient,safe and reliable,flexible and convenient,and has developed rapidly in the capital market in recent years.In our country’s capital market,listed companies are often asking for money,but it is not willing to reduce the stock to finance because of controlling rights transferring risk.The procedures of credit are strict and time consuming,so compared with these measures,equity pledge has become a relatively convenient financing option.The equity pledge has a number of financing advantages,but it also has risks such as control transfer,affecting the company’s market value management behavior.And under different development opportunities,whether the market value management behavior has a long-term tendency to create more value or the short-term behavior of opportunistic? Based on this,this paper is based on the KDX,the core issue is how the equity pledge affects the company’s market value management behavior.Decompose the core problem to the following three issues :(1)What is the path mechanism for equity pledge to induce market value management behavior?(2)What kind of market value management behavior and its characteristics will be induced under different development opportunities?(3)Under different development opportunities,the effectiveness evaluation of market value management behavior.Studies have studied the study of equity pledge mainly focused on economic consequences and dynamic research.The economic consequences of equity pledge are mainly concentrated on the company value,and most of the research is concentrated on the negative influence of company’s value under the point of view of the separation and controlling right of cash flow right.Some scholars have proposed objections but failed to achieve unanimous conclusions;and mostly empirical research,few cases of case analysis.Based on this,the innovation point of this article is:(1)to distinguish the different development stages of the company,study if the motivation,behavior and economic consequences of the municipal value management activities in different growth,(2)to supplementary equity pledges for market value management Case Study of Behavior.The research conclusions of this paper are:(1)The controlling shareholder’s equity pledge will induce the market value management behavior of listed companies.There are two specific influence paths,namely,the purpose of obtaining more financing by pledge after releasing the pledge and the purpose of reducing the risk of control transfer;(2)Under the opportunity of good development,the market value management behavior of the controlling shareholder is long-term.The value creation is not only raised in the short term,but also gives a long-term organizational mechanism to the development of the company;(3)Under the chance of harsh development,the market value management behavior of the controlling shareholder tends to have a short-term opportunity,although the stock price is stabilized in the short term.However,it has negative effect of the company in the future.The theoretical significance of the research in this paper is that domestic and foreign researches on equity pledge and market value management are mostly independent analysis,and most of them focus on large-scale empirical research.There are few real cases to discuss the mechanism,and there are few companies based on different development.opportunities to be discussed separately.Therefore,the case study of KDX Group in this paper can fill the gap in this regard.From a practical point of view,our country’s controlling shareholders have more equity pledges in recent years,and the value management activities are likely to damage the interests of creditors,small and medium investors and other stakeholders.Therefore,it is necessary to study this issue.This paper studies the market value management behaviors caused by equity pledge under different development opportunities,so as to provide stakeholders with some focus points,which are expected to allow them to identify early and stop losses in time,and also provide relevant departments with certain countermeasures and suggestions.