The Impact Of Major Shareholder Equity Pledge On The Performance Fluctuation Of Listed Companies

With the rapid development of China’s economy,more and more listed companies choose equity pledge to solve their financing needs.In recent years,the scale of equity pledge and the proportion of pledge have continued to increase substantially.This paper expands the new perspective on the economic consequences of equity pledge,provides reference for listed companies to improve internal control system and promote longterm stable and healthy development of enterprises,and also helps to improve existing relevant information disclosure systems and regulatory systems to ensure health development of the market.This paper uses a combination of theoretical analysis and empirical analysis.Based on the systematic analysis of the existing research results,the author firstly probes into the impact mechanism of equity pledge on the volatility of listed companies’ performance,and analyzes the factors such as equity balance,equity concentration,nature of enterprise property rights and continuous pledge.The corresponding research hypothesis is put forward.Then,based on the sample of China’s small and mediumsized board and GEM listed companies in 2014-2017,the empirical study on the impact of equity pledge on the volatility of the company’s performance is carried out,with equity balance,equity concentration,The nature of corporate property rights and continuous pledge are used as adjustment variables.Through a series of empirical studies,it shows that the shareholder pledge behavior of major shareholders will significantly increase the volatility of corporate performance.Further regression found that the equity balance of small and medium-sized companies and GEM listed companies has limited adjustment effect on the pledge behavior of large shareholders,and the concentration of ownership as a regulating variable can reduce the volatility of corporate performance caused by the pledge of equity of large shareholders and increase the risk of corporate risk.Ability.At the same time,when the listed company is Natureowned property rights,the equity pledge will not affect the volatility of the company’s performance.The existence of continuous pledge will strengthen the internal and external supervision faced by enterprises.