Study On The Influence Of Stock Pledge Of Large Shareholders On The Pricing Of Corporate Bonds

Bonds is an important way to improve the proportion of direct financing of enterprises in Chinas.In the bond market,as the equity pledge of major shareholders will increase the risk of control change of listed companies,resulting in the instability of the company’s management,management system and management policy,bond investors may require higher credit interest margin to compensate.Therefore,the risk of change of control caused by the pledge of controlling shareholders’ equity may also be an important factor affecting the pricing of newly issued corporate bonds.Firstly,through the method of literature reading and analysis,this paper expounds and analyzes the principal-agent theory,information asymmetry theory and default risk theory used in the research process of this paper;Combined with previous studies,this paper puts forward three hypotheses,that is,The pledge of major shareholders’ equity will lead to higher credit spread of newly issued corporate bonds as risk compensation;Audit quality will affect the relationship between shareholders’ shareholding pledge and debt.High quality audit has played a positive role in supervising shareholders’ participation in pledge and restraining shareholders from "hollowing out the company";Developed regions have a significant positive impact on the relationship between controlling shareholders’ equity pledge and bond credit spread.Using the corporate bonds issued by A-share listed companies from 2015 to 2020 to analyze the above hypotheses,including descriptive statistical analysis,mean difference test,median difference test,correlation coefficient analysis and hypothesis test(regression analysis).After empirical analysis and discussion,the above three hypotheses are proved to be true.Acording to the research,the main conclusions of this paper are described as follows:(1)there is a normal distribution relationship between the equity pledge of major shareholders and profit distribution;(2)High audit quality has a significant negative impact on the relationship between controlling shareholders’ equity pledge and bond credit spread;(3)In developed areas,the equity pledge of major shareholders has less impact on the credit spread of corporate bonds.