Equity Pledge Of Controlling Shareholder,Auditor Industry Expertise And Financing Constraints

Financing is an important activity for the market to allocate resources and finance,which is particularly important for the enterprise operation in the post-epidemic era.In recent years,equity pledge by controlling shareholders has been favored by corporate shareholders due to a series of advantages such as fast approval speed and retention of control right.However,as a "double-edged sword",it may also lead to the occurrence of corporate crises such as the transfer of control right and stock price crash.In addition,enterprises with equity pledge often cheat stakeholders through "market value management".Resulting in the reduction of information transparency,enterprise financing pressure increases.Therefore,it is of great significance for financiers,investors and regulators to discuss how to solve this financing problem.As the "link" between enterprises and the market,auditors with industry expertise precisely play the function of signal transmission and supervision.The "spillover effect" of audit quality and the "gain effect" of external information generated by auditors can improve the transparency of information and optimize the financing situation of enterprises.Based on the above analysis,this paper introduces auditor industry expertise as an external factor into the relationship between controlling shareholders’ equity pledge and financing constraint,discusses how controlling shareholders’ equity pledge affects financing constraint,how auditor industry expertise affects financing constraint,and whether auditor industry expertise plays a moderating role in the relationship between controlling shareholders’ equity pledge and financing constraint.At the same time,the nature of property rights is included in the study,and effective policy suggestions are putforward for the pledge party,the pledge party and the regulator.This paper collects and collates the data of A-share listed companies from 2017 to 2021,proposes hypotheses and constructs models,and uses descriptive analysis,correlation analysis,multiple regression analysis and robustness test to conduct empirical research.The results show that:(1)Controlling shareholders’ equity pledge behavior and pledge ratio are positively correlated with financing constraints,and the impact of equity pledge on financing constraints is more significant in non-state-owned enterprises.(2)There is a negative correlation between auditor industry expertise and financing constraints,which is more obvious in non-state-owned enterprises.(3)Auditors’ industry expertise has a negative moderating effect on the relationship between controlling shareholders’ equity pledge behavior and financing constraints.Auditors mainly send positive signals to the market,alleviating the financing constraints of enterprises,and their moderating ability is more significant in non-state-owned enterprises.The auditor industry expertise plays an insignificant role in moderating the relationship between the shareholding pledge ratio of controlling shareholders and financing constraints,because when the auditor alleviates the problem of information asymmetry,it conveys to the market the negative signal of the existence of a high proportion of corporate pledge.Finally,the positive signal and the negative signal cancel out,making its moderating effect become less obvious.Based on the research conclusions,this paper puts forward suggestions to improve the construction of accounting system,strengthen the balance and internal governance of enterprise equity,strengthen financing supervision and other suggestions,and points out the future development direction,so as to jointly create a good financing environment.There are two main innovations in this paper: one is the innovation of research perspective.From the perspective of auditor,the external regulatory factor of auditor industry expertise is introduced into the relationship between equity pledge and financing constraint of controlling shareholders as a moderating variable,and the two external effects of positive and negative signals of auditor industry expertise are taken into account.At the same time,in-depth discussion is conducted according to the nature of property rights.The second is the innovation of research conclusions.Through theoretical research and empirical research,the innovative conclusions are drawn after the robustness test.