Research On The Influencing Path Of Large Shareholder’s Equity Pledge Of SMEs To The Valuation Of Listed Companies

With the continuous reform and improvement of multi-level structure of China’s capital market,not only the large shareholders of listed companies which are from the main board are more and more keen to finance through equity pledge,but also the large shareholders of small and medium-sized listed companies are also keen on it.When previous scholars studied the problems related to equity pledge,they mainly researched the motives of large shareholders’ equity pledge and the impact of equity pledge,and few scholars researched the content of influencing path.In addition,the perspectives of previous studies are mostly limited to the micro level,and there are few scholars who conducted the research from the macro level.Moreover,the conclusions drawn on the same issue were quite different.Therefore,it is necessary to study the influencing path of the large shareholders’ equity pledge of small and medium-sized listed companies on the valuation of enterprises from the perspective of capital market.The research innovations of this paper are mainly reflected in the research perspective and variable selection,and the research will provide certain references for investment decision and market supervision.This paper firstly had theoretical analysis based on principal-agent theory,large shareholder control framework and enterprise investment theory and put forward three research hypotheses.Then based on the constructed structural equation model,this paper analyzed the influencing path of large shareholders’ equity pledge of small and medium-sized listed companies on the valuation of enterprises taking the data of SMEs from 2013 to 2017 as the research sample.In terms of variable selection,according to previous studies conducted by other scholars and the characteristic of small and medium-sized listed companies,this paper introduced the two variables of the separation of ownership and vote and investment scale.And in the consideration of the growth and security,this paper used PEG valuation method to calculate the valuation of small and medium-sized listed companies.Then,the author revised the previously established model and conducted regression analysis.Finally,the robustness test was carried out based on the substitution of large shareholders’ equity pledge rate of small and medium-sized listed companies and the empirical results showed that the revised model was robust.According to the empirical analysis,the following conclusions were drawn: First,the higher rate of large shareholders who have pledged their equity of small and medium-sized listed companies,the valuation to the enterprises given by the market was higher.Second,there were two specific influencing paths: Equity pledge?The separation of ownership and vote?Valuation to the company,Equity pledge?The separation of ownership and vote?Investment scale?Valuation to the company.The impact of the large shareholders’ equity pledge of small and medium-sized listed companies on the valuation to the company was achieved through an indirect path.Based on the conclusions of the research and consideration to the possible moral hazard caused by the large shareholders’ equity pledge of small and medium-sized listed companies,this paper put forward the following five suggestions: innovation to the management system and improvement to the related system,conscientiousness of business organization and prudence of management organization,establishment of stable fund and prevention of short-term speculation,prohibition to the direct liquidation and full consultation,improvement to the effectiveness of punishment and establishment to the long-term mechanism.