ABSTRACT
When equity pledge is rapidly emerging as a new financing method, it is of vital importance to study the relationship between equity pledge and corporate performance, which will help guide companies to improve corporate performance. This paper selects the real estate industry as the research object, builds a model based on the relevant date from 2017 to 2019, and uses panel data cross-section weighted estimation to empirically study the relationship between equity concentration and company performance. The results show that in the real estate industry, equity pledge is negatively related to corporate performance. The higher the concentration of equity, the weaker the negative impact of equity pledge on corporate performance.
