A Research On The Market Value Management Strategy Of Zhongnan Construction Group Under The Background Of Equity Pledge

As a convenient way of financing,equity pledge is favored by China’s capital market,but it also increases the risk of shareholder’s transfer of control.This paper focuses on analyzing the market value management strategy of Zhongnan Construction Group under the background of equity pledge to explore the effectiveness of its market value management strategy.I hope to enrich the research results of market value management measures under equity pledge risk through case analysis.Based on the theory of signal transmission,the theory of control,and the theory of value management,this paper defines the concepts of equity pledge and market value management and provides theoretical support for this study.Through the form of case analysis,the effect of the market value management strategy adopted by the case company under the risk of equity pledge is evaluated.Through the study,this paper draws the following conclusions: first,controlling shareholders often take the initiative to carry out market value management strategies to stabilize the company’s stock price after equity pledge,and the commonly used market value management strategies include equity incentive,cash dividend,major shareholders’ increasing holdings,investor relationship management and so on.Second,compared with illegal stock price operations,effective market value management strategies,such as equity incentive and share repurchase,can better convey a positive signal of good corporate governance to the market,improve the investment confidence of external investors and reduce the risk of stock price decline caused by information asymmetry.Thirdly,market value management is a long-term process.Short-term strategies such as performance forecast may stimulate stock price rise in a short period,but they do not conform to the core concept of market value management and do not play an effective role in long-term market value management.Therefore,listed companies should implement effective market value management from the perspective of market value and long-term synergistic development of the company,from the perspective of capital structure optimization and investor relationship maintenance.Through this study,it can provide some new ideas for the market value management of listed companies under the background of equity pledge.At the same time,this paper also verifies that market value management is not the same as stock price management.Regulators should regulate the management of stock price manipulation of listed companies,encourage listed companies to establish long-term and effective market value management systems,to enhance the orderly development of the capital market.