| Pledges of controlling shareholders’ equity have occurred in the capital market as at11 March 2022,with a total of 19,400 pledges of 416,418 million shares,greatly attracting the attention of academics and practice sessions.Among them,the phenomenon of high proportion of equity pledges and the frequent occurrence of share price collapse and stock liquidation derived from it have attracted even more research interest from the academic community,i.e.whether equity pledges are associated with the business performance of enterprises and if so,what are the mechanisms at play.Therefore,this paper puts forward two hypotheses from the perspective of the flow of pledges,based on principal-agent theory,financing theory,resource constraint theory and signaling theory,which are: 1.Different flows of equity pledges have different impacts on the financing constraint ability of listed companies,and thus have different impacts on operating performance.2.When pledges flow back to the main listed company in the form of debt or equity,they can alleviate its financial constraints and thus improve operating performance.And an empirical study is done.This paper selects A-share listed companies with equity pledge records in China as the research object and extracts their equity pledge announcements as the starting point of the study.The paper takes 2010-2020 as the research period,and empirically analyses and illustrates the relationship between the flow of pledged money and operating performance through a random effects model.The full paper is divided into six parts.The first part is an introduction to the whole paper,which briefly describes the scientific background,the research rationale,the methodological theory,and the underlying theoretical and practical implications involved.The second part is a review of the paper,which meticulously introduces the academic research findings in the foreign literature in the three main areas of equity pledges,financing constraints and business performance.The third section is an introduction to the system,its theoretical underpinnings and research hypotheses.This section will focus on reviewing the equity pledge regime in China and explains the theoretical foundations on which the paper is based,both to derive the research hypotheses.The fourth section is the design of the model and the introduction of variables,which sets out the framework and steps for the empirical study in the next section.The fifth section presents the empirical study of the sample data,as well as the analysis and description of each empirical result.The final section concludes with conclusions,policy recommendations and prospects for future research.This paper mainly uses SPSS and STATA as the data analysis software.Through the relevant empirical tests,the conclusions obtained show that: 1.different flows of pledges will have different impacts on the business performance of enterprises;2.the flow of pledges will affect the financing constraints of enterprises,and when the pledges flow to the main listed companies,it will alleviate their financing constraints;3.financing constraints and business performance are negatively related;4.the financing constraints are negatively related in the "flow of main listed companies and business performance".4.financing constraints play a part in mediating the relationship between the flow of pledged funds and the operating performance of listed companies;5.the moderating effect of the combination of the two positions on the relationship between the flow of pledged funds and the operating performance is not significant.On this basis,this paper puts forward some policy recommendations from the perspective of multiple entities,and points out the limitations of the research process and possible directions for future improvement. |
