Abstract Taking the A-share listed companies in Shanghai and Shenzhen stock market from 2005 to 2020 as the research object, this paper divides the risks caused by equity pledges into four types: proportional risks, moral risks, market risks and legal risks, and studies the relationship between stock repurchase and equity pledge risk. There are following findings: (1) Stock repurchase can alleviate the ratio, market and legal risks of the current and future period, and can also reduce moral hazard of future period caused by equity pledge. (2) Investor sentiment only plays a partly intermediary role in the ratio between the current period and the future period and the legal risk in the future period. (3) After analyzing the samples classified by the nature of property rights and emotional index, it is found that the samples of state-owned holding companies will increase the risk of equity pledge ratio, and investor sentiment can not play an intermediary role. The sample results of private holding companies are consistent with the total sample results. Moreover, both high emotion samples and low emotion samples can alleviate the proportion, market and legal risk of current and future periods, but investor sentiment can only play an intermediary role in low mood samples. The findings mean that after equity pledges, listed companies are more inclined to use and create good news to raise their stock prices, so as to alleviate the risks of equity pledge.
2021, Vol. 38 
