Equity Pledge And Corporate Risk Taking

Since 2014,China's a-share market emerged from the financial crisis in 2008.The active stock trading and the recovery of market confidence have boosted the stock prices of listed companies.Equity,which has both liquidity and market price,has become the first choice of mortgage financing for controlling shareholders.Since2013,insurance investment has become an important part of China's stock market,and even become the main force to resolve stock liquidity risks at the end of 2018.In the market,more and more companies have pledged shareholders' equity,which accounts for A higher and higher proportion of the total listed companies.The controlling shareholder equity pledge with the enterprise risk bearing and the relationship of changes in the different background,not only helps to enrich the controlling shareholder equity pledge economic consequences research,but also to protect the interests of investors,improve the enterprise internal control,to help regulators to better equity pledge to dissolve the stock liquidity risk,is of great significance.This paper combines normative analysis with empirical analysis.Firstly,relevant literature is sorted out and relevant theories of equity pledge and corporate risk taking are analyzed.Then,according to the research objectives,this paper also analyzes the impact mechanism of monetary policy uncertainty,insurance institutional investors and management shareholding on the relationship between equity pledge and corporate risk taking,and proposes four research hypotheses of this paper.Then,this paper adopts the method of empirical analysis,selects the target companies listed on a-share market from 2007 to 2015 as the research samples,and conducts empirical research and result analysis on the four research hypotheses in this paper.Finally,the robustness test was carried out to solve the endogenous problem and ensure the robustness of the results.It is found that there is a significant negative correlation between the pledge of controlling shareholders' equity and corporate risk taking,and the monetary policy and the uncertainty of insurance institutional investors' shareholding will make this negative correlation more obvious.Finally,the level of management shareholding has a positive moderating effect on the relationship between the pledge of controlling shareholders' equity and corporate risk taking.