Stock Rights Pledge Of Large Shareholder,Nature Of Ownership And Bank Loans

With our system of equity pledge of continuous improvement,increasing financing needs of listed companies,equity pledge has gradually become China’s listed company shareholders "two important financing way financing" in the capital market,the economic consequences by the close attention of practitioners and theorists may influence factors of equity pledge and the.However,despite the large shareholder equity pledge financing for its convenience,but also accompanied by some risk.The existing literature study found that large shareholder equity pledge,there are often hidden information,earnings management,listed company funds embezzlement,and tunneling behavior of listed companies.These have increased the degree of information asymmetry between banks and listed companies,to increase the risk of bank credit.So,whether the bank can identify equity pledge risk,consider this factor in signing the loan contract?In view of this,this paper use 2007-2015 China’s Shanghai and Shenzhen two A shares of listed firm annual data bank based on the perspective of risk identification,combined with the special characteristics of the property rights system in China,the empirical test of the impact on the company’s shareholder equity pledge loan.The study found that:(1)The bank can effectively identify shareholder equity pledge risk under the same conditions,compared with the non-occurrence of major shareholder equity pledge of the company,the company shareholder equity pledge to obtain bank loans less,and equity pledge ratio is high,less access to bank loans.(2)Compared with short-term loans,because the long-term borrowing period is longer,once the future of major shareholders of earnings management,funds and tunneling,banks will be difficult to recover the loan.Therefore,compared with short-term loans,the large shareholder equity pledge has more serious impact on long-term loans.(3)Shareholder equity pledge impact on bank lending have significant difference among state-owned enterprises and private enterprises,compared with the state-owned enterprises,large shareholder equity pledge effect on bank loans in the private enterprise is more serious.The main contributions of this paper are as follows:(1)This research enriches the shareholder equity pledge to the economic consequences.The majority of previous studies based on the pledge of equity interests of the company itself,discusses the influence of equity pledge behavior of large shareholders,earnings management,firm value and equity and other possible risk of collapse.However,as one of the important external supervisors,banks are able to identify the listed company’s largest shareholder equity pledge may lead to adverse effects,the existing literature rarely involved.This paper based on the perspective of bank risk identification,empirical test of the shareholder equity pledge of the listed company of bank loans,the research expands the field of equity pledge.(2)Previous studies found that the company’s financial characteristics,corporate governance and institutional environment are important factors that influence bank lending,but no research literature from the perspective of equity pledge.Therefore,this study enriches the research of bank loan related documents,but also for the future related research experience.The results of this study are:(1)The policy implications of regulatory authorities to deal with large shareholder equity pledge quality more strictly supervision,to avoid a major shareholder through equity pledge occupy the interests of listed companies,to promote the healthy and orderly development of China’s capital market.(2)The conclusion of this paper is to remind other stakeholders,such as two in the primary market of medium and small investors,large shareholders to pledge of shares of listed companies held a cautious attitude,especially those shareholder equity pledge to a higher rate of company.