Research On The Influence Of Large Shareholders' Overconfidence On Equity Pledge

With the increasing size of equity pledges in recent years,The transfer of corporate control rights caused by equity pledges has become more and more serious,it has attracted more and more attention from all walks of life.Based on these,this article uses corporate governance theory and overconfidence theory to explore the impact of large shareholders 'overconfidence on the pledge of large shareholders' equity in the enterprise.There is a ratio.In addition,the separation of the two rights between cash flow rights and control rights and the source of auditors are used as adjustment variables to study whether the two will affect the relationship between the overconfidence of large shareholders and the pledge of equity.In this study,we found that if the company's large shareholders have overconfidence,then the probability of equity pledge is higher,and the pledge rate will be higher.In addition,the article also found that:(1)Compared with companies with low equity separation,high equity separation will increase the positive relationship between overconfidence and equity pledge decision;(2)and compared with auditors from non-four Large accounting firms,auditors from the four major accounting firms will suppress the positive relationship between the overconfidence of large shareholders and equity pledge;(3)And in further research,it is found that compared with companies without equity pledge,equity The performance of the pledged company is poor.The contribution of this article mainly consists of the following points:(1)Based on the overconfidence theory,this article starts to study the motives of large shareholders 'equity pledge,and enriches the relevant literature on large shareholders' equity pledge motivation.The current research on the motivation of equity pledge mainly focuses on agency theory and financing constraints.What is different from the previous research is that this article conducts research from the perspective of large shareholders to explore why large shareholders pledge equity,thus enriching the relevant literature on equity pledge motives;(2)The research in this article helps deepen overconfidence Understanding.Regarding overconfidence,previous studies were more about debt ratios,investment decisions,and financing decisions.This article reduces the concept of financing decisions to equity pledges,and explores the impact of overconfidence on financing decisions in a more in-depth manner.(3)The research in this paper also has important reference value for investors,and the tendency of overconfident large shareholder's equity pledge is more obvious,which affects the value of the enterprise.Therefore,when investors evaluate the target company,whether the large shareholder pledges equity can be used as a very important measurement standard;(4)The research in this paper has important reference value for listed companies,regulatory authorities and financial institutions.For listed companies,due to the negative relationship between the equity pledge of large shareholders and company performance,listed companies need to make reasonable adjustments to the corporate governance system,improve corporate governance,and supervise large shareholders in terms of equity structure and board structure.To weaken the situation where the major shareholder is the only one;from the perspective of the supervisory authority,the supervisory authority is not irresponsible for the economic risks caused by the current equity pledge.Before the equity pledge,it should be estimated,and the relevant rules and scale of the equity pledge should be supervised to avoid the financial risks brought by the equity pledge.For financial institutions,in order to prevent the potential risks brought by equity pledges,they should also conduct a strict review of the company's financial situation to prevent systemic risks.