| With the development of the capital markets, the great changes have taken places in the ownership structure. The ownership structure of the company in the world become centralized, the controlling shareholders appear. Act of the controlling shareholder become the hot spot in recent years. Because of the controlling shareholder, the chief agency problem is the controlling and minority shareholders. According to the company’s annual report and media reports, we find stock pledge become frequent. It is a new financing way. More and more company choose it because of its advantage.Especially after the economic cri, the company need more funds. Add to costs of people materials is high. Value creation is the core and the power of the company. We will make connection the stock pledge with company value to research the impact of the controlling shareholder’s stock pledge on the company value of the listed company. With the further research, we find stock pledge separate control rights and cash flow rights.The result of the separation of control rights and cash flow rights is that the controlling shareholder will damage the interests of the company. Then it will damage the company.we put it as the ideas of the article.In first it is the research background and the research significance. Then we comb and review of related literature at home and abroad. Then we summarize the theory and the definitions of this title.Thirdly we introduce a case-LT company to analysis its controlling shareholders’ stock pledge impact its value of company or not. If impact, how to impact the value of company. According to result,we find the stock pledge damage the value of the company. Finally, we will give the recommendations to prevent negative impact of stock pledge. With the recommendation, we hope it will give suggestions to regulators and investors and protect the interests of minority investors. We can ease the agency problem and purity the capital market and boom market economy. |
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