The Impact Of Controlling Shareholder Equity Pledge On Company Stock Price Fluctuation

In recent years,equity pledge,as a new financing method,has been favored by listed companies because of its low financing cost and fast financing speed.However,equity pledge also has certain risks.When the stock price falls to the warning line,major shareholders cannot make up their positions.At this time,the pledgee will forcibly liquidate the position and the control of the major shareholder will be transferred,which will affect the company’s performance,and the company’s performance is closely related to the stock price.Therefore,there must be a certain connection between equity pledge and stock price fluctuations.Based on this,this paper uses the 2015-2020 A-share listed companies in Shanghai and Shenzhen as a sample to analyze the impact of equity pledge on stock price fluctuations,and puts forward four assumptions and finally draws the following conclusions:(1)Equity pledge will aggravate stock price fluctuations,and the higher the pledge ratio,the greater the volatility of the stock price.(2)The higher the equity concentration,the stronger the positive correlation of equity pledge on stock price volatility.(3)The larger the enterprise scale,the stronger the positive correlation between equity pledge and stock price fluctuation.(4)Information asymmetry plays a mediating effect between equity pledge and stock price volatility.(5)Further research finds that,compared with private enterprises,the equity pledge behavior of state-owned enterprises has a stronger positive impact on stock price volatility.Finally,according to the research results,some suggestions are put forward from the perspectives of regulatory authorities,listed companies themselves,financial institutions and investors,including: strengthening the information disclosure of equity pledges,strengthening policy guidance for enterprises with different property rights,increasing Relevant penalties,the establishment of an effective check and balance mechanism within the company,the strengthening of investors’ ability to identify risks,and the establishment of a risk prevention and control system for financial institutions.