Research On The Effect Of Pledge Ratio On Stock Yield And Stock Crash

With the convening of the 19 th National Congress,China's financial system has been further deepened,corporate financial risks have been further prevented,and financial services have been increasingly diversified and improved to meet the increasing financing needs of enterprises.Among all kinds of financing services,stock pledge,as a new financing method,has been used more and more for listed companies.There is no doubt that pledge of equity has a positive effect on enterprise financing,but we must realize its negative effect.When the economy is in a steady state of easing,equity pledge can play its role in financing,"invigorating" the funds of listed companies.However,in recent years,the frequent "flash crash" of the A-share market has played a vital role in studying the impact of pledge ratio on the financing mechanism of listed enterprises in China and promoting the smooth operation of the capital market.Based on the data sample of A-share market in 2019,this paper uses multiple linear regression,Box-cox transformation,Logistic regression and other methods to analyze the impact of stock pledge ratio on return rate and its relationship with stock flash crash.The results show that the stock pledge ratio is negatively correlated with the stock return rate.High pledge ratio often means high risk.Meanwhile,high pledge ratio also increases the risk of stock flash crash.