Research On The Impact Of The Pledge Of Major Shareholders' Equity On The Risk Of Stock Price Collapse

Equity pledge is a means of using shares to mortgage to banks or other third-party financial institutions.Equity pledge has the characteristics of simple process and strong liquidity,which has become one of the main ways for shareholders of listed companies to obtain financing.At the same time,equity pledge is a double-edged sword in the process of practical operation.Although it has great advantages in the convenience of financing,the risks can not be ignored,otherwise it will not only have a serious negative impact on the development of enterprises,but also may lead to the whole market oscillation.If it is in a declining market,once the proportion of the maintenance guarantee calculated according to the financing amount and the market value of the Pledged Shares approaches the early warning line or the closing line,the bank or the third-party financial institution will require the shareholders of the listed company to increase the guarantee or repay the funds in order to control the risk.When the stock price continues to decrease and the major shareholders are unable to make additional investment for guarantee,the major shareholders are likely to face the risk of being forced to close their positions.At this time,when the stock is sold,the stock price will further fall,and the listed companies will face a vicious circle of stock price decline.This paper mainly selects the companies listed on the A-share in Shanghai and Shenzhen stock markets from 2005 to 2018 as the main research object,and investigates the impact of equity transfer and pledge on the risk of stock price collapse.Major shareholders pledge their own shares,which leads to a great risk of stock price collapse in listed companies;once the stock price falls and falls below the warning line,major shareholders will be forced to increase the security deposit or be forced to close their positions.It is easy to cause investors to panic and form stampede events.The stock price of the company falls furthe,which leads to stock price crash.This paper analyzes the possible risk of stock price collapse caused by stock pledge,whichwill play a certain role in preventing the risk of stock price collapse.