Equity Pledge Of Large Shareholders And Corporate Governance Impact On The Corporate Performance

Under the background of difficult financing and expensive financing,Equity pledge financing has become a common financing way for large shareholders of listed companies in recent years.According to the statistical data,In the A share market,nearly 50% of the listed companies have large shareholders equity pledge behavior.Large shareholders have high shareholding ratio,and large shareholders have the control rights of listed companies,so they can have a significant impact on Listed Companies.With the transformation of the principal-agent problem in the modern corporate system,the large shareholders begin to play a very important role in corporate governance,On the one hand,they can ensure the effective operation of the company and supervise the management,and on the other hand,large shareholders will in order to obtain private benefits of control to influence the decision-making of the company,even in their own interests to damage the whole company and other minority shareholders,which will deepen the agency conflict between large shareholders and small shareholders then,the influence on the performance of the company.Therefore,the study of large shareholder equity pledge financing has important theoretical and practical significance.In view of the Principal-Agent Theory and Private Benefits of Control theory,this paper focuses on the relationship between the shareholder equity pledge of large shareholders and corporate performance,and takes into account the characteristics of corporate governance to regulate the two relationships respectively.The author selects the financial statements of the listed companies in 2013-2016 as sample,uses the empirical analysis method to explore.The results show that the degree of stockholders' equity pledge has a negative effect on company performance;In corporate governance,as equity concentration increases,the negative impact of large shareholder equity pledges on company performance is greater,and the state-owned listed company gain the harder relationship between the shareholder equity pledge of large shareholders and thenegative effecting of corporate performance while the degree of ownership balance,senior management shareholding ratio's and duality of chairman and CEO both have thenegative moderating effect on the relationship between the shareholder equity pledge of large shareholders and corporate performance.In general,certain degree of equity balance and executive incentives can weaken the negative impact of large shareholder equity pledges on company performance.Finally,according to the above analysis,this paper puts forward relevant policy recommendations on regulating the behavior of large shareholders after the equity pledge,and improving the performance of listed companies.