Study On The Impact Of Controlling Shareholders' Equity Pledge On Stock Price Crash Risk

As a new financing method,stock pledge has become an efficient financial strategy favored by major shareholders in recent years.High income means high risk,and equity pledge is a double-edged sword.The stock pledge is generally accompanied by the decline of the company's stock price,which is because the major shareholders need to guarantee for it.If they are a little careless,they may be forced to close their positions and lose the control of the company.In addition,the value and performance of the company have also declined due to multiple equity suppression.In a serious sense,the stock price of the company may collapse as a result.On the basis of theoretical analysis,this paper takes all A-share listed companies from 2013 to 2018 as the observation samples of this data.After a lot of theoretical analysis and empirical research,combined with the comparative collection,collation and access to a large number of information about equity pledge,mainly including the economic consequences of equity pledge,the impact of controlling shareholders' shareholding and the related literature on the subject of stock price collapse risk,this paper analyzes the relationship between various factors and makes an empirical analysis.The research of this paper shows that: firstly,the stock pledge of controlling shareholders is in direct proportion to the risk of stock price collapse;secondly,compared with state-owned enterprises,the stock price of non-state-owned enterprises is more likely to collapse because of the stock pledge of shareholders;finally,the risk of stock price collapse after the stock pledge is in direct proportion to the size of the controlling shareholders of the company.The new ideas put forward in this paper are as follows: First,this paper discusses the correlation between the stock pledge of controlling shareholders and the probability of stock price collapse,and finds new results of stock pledge.Secondly,the research of this paper promotes the research process of the cause of individual stock price collapse to a certain extent.