Research on the Impact of Controlling Shareholders' Equity Pledges on Firm Performance from the Perspective of Corporate Governance

In recent years, as companies face increasing financing difficulties due to factors such as stringent lending conditions and high interest rates, new financing methods have emerged. Among these, equity pledges have gained attention due to their simple approval process, low cost, and ability to maintain shareholder control. As a result, equity pledges have become a preferred financing option for shareholders of many listed companies. This paper examines the equity pledge behavior of major shareholders and its potential impact on company performance. It begins by introducing the background of the equity pledge market, then reviews relevant literature on the economic impacts of equity pledges, which are classified into positive synergistic effects and negative encroachment effects. Additionally, corporate governance theories suggest that internal and external governance mechanisms influence the relationship between equity pledges and firm performance, and the nature of equity in different firms also affects post-pledge outcomes. Based on these theoretical insights, three research hypotheses are proposed for empirical analysis, with reliable conclusions drawn through multiple regression analyses, heterogeneity, and robustness tests. By incorporating corporate governance as a moderating variable, this paper expands on previous research on equity pledges and offers recommendations for market regulators to enhance equity pledge regulation and use corporate governance tools for positive outcomes.