Research On The Impact Of Equity Pledges On Capital Structure Changes In Company Y

Academic research has focused on the factors,patterns,transmission paths,adjustment speeds,and different perspectives of corporate capital structure changes.In recent years,scholars have paid more attention to the factor of equity pledge.Equity pledge business has been emerging since 1995 and has now entered a regulatory stage.It is seen as a low-cost financing channel for companies to raise funds while maintaining stable stock prices and controlling ownership without transfer.Empirical research has dominated capital structure research,but its drawback is that it ignores the specific situations of individual companies.Y Company began its cyclical equity pledge in 2004,attracting attention.This article adopts the framework of trade-off theory,pecking order theory,agency theory,and information asymmetry theory.Firstly,it analyzes the current situation of equity pledge in listed companies and industries,and then analyzes the relationship between equity pledge,capital structure,information disclosure,equity incentive,and other indicators in Y Company.A sample of monthly data from 1993 to 2022 is used for regression analysis to determine the optimal capital structure.Further,using the capital structure adjustment model,this paper conducts ridge regression empirical research on the impact of Y Company’s major shareholder equity pledge,information disclosure quality,and equity incentive intensity on capital structure changes,and performs robustness checks using the system GMM estimation method.The conclusion is that Y Company’s major shareholder equity pledge has a significant negative impact on capital structure changes,with higher pledge ratios leading to slower capital structure adjustment.However,information disclosure quality and equity incentive intensity play a moderating role in this process.The higher the information disclosure quality and equity incentive intensity,the faster the capital structure adjustment to the target capital structure.In addition,Y Company’s capital structure has remained stable at a level close to the target capital structure over the long term.Based on the empirical conclusions,this article proposes some improvement measures in terms of dynamic capital structure management mechanisms,more transparent information disclosure policies,and reasonable use of equity incentive.In summary,academic research has focused on the factors,patterns,transmission paths,adjustment speeds,and different perspectives of corporate capital structure changes.Y Company’s equity pledge has a significant negative impact on capital structure changes,but information disclosure quality and equity incentive intensity play a moderating role.The company’s capital structure has remained stable over the long term,and some improvement measures are proposed based on empirical conclusions.