Stake of shares, Stock liquidity and Listed company information disclosure violations

Abstract

In recent years, due to the rapid development of China's domestic market economy, the financing method of equity pledge has played a very important position and influence among the main financing methods of listed companies due to its strong flexibility, simple transaction method and high efficiency. Based on the panel information of A-share non-financial listed companies in Shanghai and Shenzhen from 2016 to 2022, this paper studies the impact of equity pledge of controlling shareholders on corporate information disclosure violations, and explores whether equity pledge will affect corporate information disclosure violations by affecting stock liquidity. The results show that the equity pledge of the controlling shareholder will significantly improve the liquidity of stocks, thereby aggravating the company's information disclosure violations, and the stock liquidity will enhance the inducing effect of equity pledge on the company's information disclosure violations. Moreover, in non-state-owned enterprises, the impact of equity pledge of controlling shareholders on corporate information disclosure violations is more significant.