An Empirical Analysis Of The Impact Of Stock Pledge And Goodwill On Stock Price Changes

Stock pledge is a conventional financial financing method of controlling shareholders.In the process of stock pledge,controlling shareholders still have the decision-making and management rights of listed companies,so their equity status in listed companies will not be affected,which leads to the common behavior of stock pledge by controlling shareholders of listed companies.In addition,in recent years,mergers and acquisitions of listed companies occur from time to time,leading to the common existence of goodwill in listed companies.According to the data of Zhongdeng Company,as of December 31,2020,there were 4,160 listed companies in the domestic A-share market.From 2016 to 2020,the proportion of listed companies with stock pledge of controlling shareholders was 47.19%,and the proportion of listed companies with goodwill was 60.19%.It is very common for listed companies to have stock pledge and goodwill of controlling shareholders.The stock pledge of the controlling shareholder and the impairment risk of the company’s goodwill may amplify the systemic risk of the A-share market,thus affecting the stability of the A-share market.Therefore,it is of great practical significance to study the relationship between stock pledge,goodwill and stock price changes of listed companies and related theories.This paper takes the stock pledge and goodwill of the controlling shareholder of listed companies as the entry point,and based on the relevant data of China’s Shanghai-Shenzhen A-share listed companies from 2016 to 2020,adopts the time and individual double-fixed effect model to empirically-analyze the influence of stock pledge and goodwill of the controlling shareholder on the change of the company’s stock price.The empirical results show that:first,there is a negative correlation between the number of shares pledged by controlling shareholders and the proportion of shareholders’ holdings and the annual relative return of stocks;Second,the ratio of goodwill to total assets of listed companies is also negatively correlated with the annual relative return rate of stocks.The research significance of this paper lies in:by studying the direct relationship between the share pledge ratio of controlling shareholders of A-share listed companies,the proportion of corporate goodwill to total assets and the change of individual stock price,this paper can provide reference and suggestions for the policy formulation of regulatory agencies,the internal risk management of listed companies and the investment decisions of investors.