Equity Pledge,Earnings Management And Stock Price Crash Risk

Equity pledge is a kind of financing behavior that takes stock right of listed company as pledge guarantee.In addition to breach of contract,forced closing and other situations,the shareholders of the company can raise a large amount of funds under the condition of maintaining the ownership of the pledged equity.China's enterprises,especially private enterprises,are facing the problem of financing difficult and expensive.Therefore,in recent years,the stock pledge business in China has developed rapidly,and stock pledge has become one of the important financing channels for shareholders of listed companies.This paper studies the relationship between the pledge of controlling shareholders' equity and the risk of stock price collapse,and considers the impact of the nature of property rights on the relationship.Furthermore,this paper uses the method of Wen Zhonglin et al.(2014)to verify the transmission mechanism of "controlling shareholder equity pledge real earnings management risk of stock price crash".The empirical results show that the pledge of controlling shareholders is positively related to the risk of stock price collapse.This may be caused by the controlling shareholders' hollowing out the interests of small and medium-sized investors,market value management,and the low transparency of information in China's capital market.Compared with the state-owned holding company,the non-state-owned listed company shareholders' equity pledge has a more significant positive correlation with the risk of stock price collapse.Further intermediary effect test shows that real earnings management plays a part of intermediary effect in the impact of controlling shareholders' equity pledge on the risk of stock price collapse.This paper is based on the impact of controlling shareholders' equity pledge on the risk of stock price collapse.In theory,it has promoted the relevant research on the impact of equity pledge and the factors affecting the collapse of stock price;in practice,in order to strengthen the shareholders' awareness of risk prevention of equity pledge financing,promote the small and medium-sized investors to raise their awareness of vigilance,provide the key points for supervision and management of equity pledge,standardize the relevant economic activities of listed companies and their shareholders,and guarantee the capital market Healthy development is of great significance.