Investigation And Analysis On The Impact Of Controlling Shareholders' Equity Pledge On Corporate Governance

Equity pledge is that shareholders pledge shares to third-party financial institutions to obtain loan financing,which broadens shareholder financing channels and enables third-party financial institutions to implement risk control and management.For the company's controlling shareholder,equity pledge is a financing method that it is more enthusiastic about when facing financial difficulties.According to Wind data,as of July 2018,a total of 3,338 A-share companies have pledged equity,accounting for about 94.5%of the total number of A-share listed companies.The market value of pledged stocks is about 5 trillion yuan,accounting for about A-share total market value 10%.The controlling shareholder may bring serious agency problems after the pledge of equity.As a result,major shareholders "empty" listed company assets,reducing the company's value,and even affecting the macro economy,which is not conducive to the stable operation of the market economyThis article will use empirical analysis to explore the impact of equity pledge on the level of various connected transactions and corporate governance based on the PSM-DID model,and further explore how equity pledge can further affect the company's connected transaction level by affecting corporate governance structure1)Equity pledge will increase the level of guarantee related transactions,while suppressing the level of related transactions of commodity trading,and the increase effect of the former is greater than the suppression effect of the latter,eventually leading to an increase effect on the overall level of related transactions.2)In terms of equity structure,equity pledges will cause the remaining ten shareholdings of the top ten shareholders to decrease,mainly because equity pledges may release negative signals within the company,causing the remaining shareholders to compete to sell or pledge their own shares,which will lead to equity Reduced balance3)In terms of the efficiency of the two conferences,equity pledges will reduce the size of the board of supervisors and the size of the board of directors.This is mainly because equity pledges will release negative signals within the company and reduce the management confidence and willingness of the management of the two conferences,resulting in a reduction in corporate governance and the company Governance efficiency becomes lowIn addition,regarding the impact mechanism,this article found through empirical testing of the mediation effect:1)Equity pledge will reduce the remaining shareholding ratio of the top ten shareholders,further increasing the level of guarantee related transactions;2)Equity pledge will further increase the level of related transactions in commodity transactions by reducing the size of the board of directors and the board of supervisors.The research results in this article also have a scientific and effective supplement to the current empirical system.This article uses a Preference Matching-Double Difference Model(PSM-DID)model to quantitatively analyze the impact mechanism of shareholder equity pledge on connected transactions,which can not only exclude the company itself.The impact of variables can alleviate the endogenous problems currently existing in the field of empirical research.It can not only study the short-term impact mechanism of equity pledge,but also study the long-term impact mechanism of equity pledge.