Study On The Influence Of Equity Pledge On “We Media” Information Disclosure

As a kind of financing mode,controlling shareholder equity pledge is more and more favored by controlling shareholders with its characteristics of less restrictions and fast financing.But real-time changes in stock prices,when the stock price falls to some extent,will lead to liquidation risk or even control transfer risk.To prevent the risks of falling stock prices,controlling shareholders usually take measures such as market value management to keep the stock price stable.As a kind of market value management,information disclosure is more flexible and has more manipulation space.Different from traditional information disclosure channels,the costs of "We Media" information disclosure are lower,the dissemination speed is faster,and the dissemination scope is wider.Therefore,will the controlling shareholder equity pledge affect the "We Media" information disclosure? Compared with companies with no stock price risk,companies with stock price risk may face a higher risk of control transfer.Further,do listed companies with stock price risk have the impact of equity pledge on information disclosure more significant? The value of listed companies that have pledged many times within the month is accepted and recognized by the market,and the financing is less limited.Therefore,for listed companies that pledge only once within a month,is the motivation of "We Media" information disclosure stronger? These are all questions worth studying.This paper conducts an empirical test of the monthly data of A-share non-financial listed companies from 2009 to 2020,analyzes the impact of controlling shareholder equity pledge on "We Media" information disclosure,and examines the regulatory effect of equity pledge on "We Media" information disclosure from the perspective of stock price risk and number of equity pledge.The study finds that the controlling shareholder equity pledge can significantly affect the information disclosure;and the impact is more significant for listed companies with stock price risk or only pledge once in that month.Further research find that when the shareholding proportion,audit quality and analyst tracking number of the largest shareholders are different,the impact of the controlling shareholder equity pledge on the "We Media" information disclosure is different;and during the period of controlling shareholder equity pledge,the controlling shareholder is more inclined to release the original information rather than forwarding the information.Finally,this paper puts forward targeted suggestions for relevant subjects: first,listed companies should make full use of "We Media" release information during the equity pledge to reduce the stock price risk;second,investors should reasonably use "We Media" information to build a portfolio to obtain excess returns;third,the regulatory authorities should not only guide listed companies to release information on "We Media" platform,but also strengthen the supervision of information disclosure.While supplementing the study on the economic consequences of controlling shareholder equity pledge,this paper provides reference for listed companies to use "We Media" for information disclosure.