Research On The Impact Of Equity Pledge By Major Shareholders Of Zjbc On Financial Behavior

In 2013,securities companies were allowed to accept equity pledge business for the first time.Since then,China’s equity pledge business has ushered in a period of rapid development.However,intercontinental oil and gas,the first A-share listed company to be forced to close its positions in 2017,made people aware of the risks behind the equity pledge.After the major shareholders pledge their equity,in order to prevent the risk of equity pledge,they will use the control right to intervene in the financial behavior of listed companies,so as to send a positive signal to the outside world and maintain the stability of stock price.Therefore,studying the impact of equity pledge on financial behavior can more clearly reveal the negative effects of equity pledge and help optimize the supervision of equity pledge.Firstly,this thesis collects and sorts out the literature related to the motivation,economic consequences and impact on financial behavior of equity pledge.Secondly,it defines the important concepts in this thesis,and expounds the basic theories related to the impact of equity pledge on financial behavior.Then,it introduces the background and current situation of shareholders’ equity pledge of A-share listed companies,poses the case object of this thesis:ZJBC company,and combs the high proportion equity pledge behavior and economic consequences of its top three shareholders.Thirdly,the above theory is combined with the case of ZJBC,and the case analysis is carried out from the perspective that the equity pledge of major shareholders affects the company’s financial behavior.The high proportion of equity pledge of major shareholders will lead them to intervene in various business activities for the purpose of protecting their own interests,which will be reflected in various financial behaviors.In this case,it is mainly reflected in(1)earnings management;(2)Inefficient investment;(3)Share repurchase;(4)information disclosure and so on.Finally,aiming at a series of problems caused by high proportion equity pledge and the impact path on financial behavior,this thesis summarize the research conclusions and countermeasures.In a word,the high pledge rate of the major shareholders of ZJBC led to its intervention in a series of financial behaviors of listed companies,which infringed on the interests of minority shareholders and the company in order to protect their own interests and brought negative effects to the operation of the company.The innovation of this thesis is that it enriches the research on the economic consequences of equity pledge by studying the impact of shareholder equity pledge on enterprise financial behavior.By analyzing a representative case,it refines the specific path and mechanism of equity pledge affecting financial behavior,which helps shareholders recognize the risks behind equity pledge and standardize equity pledge behavior.