The Impact Of Large Shareholder's Share Pledge On Corporate Performance Of Manufacturing Industry Listed Companies

In May 2013,the on-site pledge was officially launched,and the scale of share pledge grew rapidly.The bull market helped boost the rapid expansion of share pledge business in 2014-2015.Share pledge not only has the characteristics of convenience,but can also ease financing constraints and obtain funds without diluting the control of large shareholders.Since then,share pledges have been favored by large shareholders and have become an important way for company financing.However,there may be hidden risks behind the equity pledge.Once the price of the pledged stock reaches the open line and there is no margin call,the stock will be forced to close out,.In addition,some large shareholders cash out in the name of share pledge to make money and tunnel the company,which seriously damages the interests of investors as well as the corporate performance.Therefore,both companies and regulators need to strengthen the supervision and regulation of the equity pledge of large shareholders.As a pillar industry,the manufacturing industry has faced the pressure of transformation and upgrading in recent years,so the way to finance of manufacturing industry is particularly important.From the perspective of principal-agent theory,this paper uses empirical analysis methods to study the impact of large shareholders share pledge on corporate performance of manufacturing industry listed companies.The empirical findings show that the large shareholders equity pledge financing of the manufacturing industry has a negative impact on corporate performance,and this effect is significant in non-state companies,but not significant in state-owned companies.After taking the equity concentration into consideration,it is found that equity concentration has a positive effect on corporate performance and has a moderating effect,which can exacerbate the negative impact of share pledge ratio on corporate performance.Taking the share pledge period into consideration,it is found that the equity pledge period has a positive impact on company performance.However,not all pledge events will announce the pledge period.After considering whether to announce the share pledge period,it is found that announcing pledge period has an improvement effect on the company performance,and this behavior also has a moderating effect,which can reduce the negative impact of the share pledge ratio on corporate performance.Share pledge aims to provide a convenient financing channel for listed companies,but triggers a series of risks during its development.Therefore,it is very important to restrict the behavior of the large shareholders,strictly supervise the equity pledge and disclose pledge information.For the company,it should be strengthened to prevent large shareholders from transferring profits through the share pledge.For regulatory authorities,it is important to strengthen the disclosure requirements for equity pledge information to reduce information asymmetry,and improve the bail-out plan to guide the equity pledge market.