Analysis Of The Financing Mode Of Equity Pledge

With the development of China's capital market,the trend of diversification of financing channels for enterprises to strengthen,with equity property and convenience features make it as collateral advantage gradually,this kind of financing equity pledge has achieved great development.On the one hand,the equity pledge in accordance with national policies to encourage business development,and the program is simple,less restrictive conditions;on the other hand,banks and other financial institutions are also very willing to accept high transparency,strong cash equity of listed companies as the subject matter of pledge.Therefore,more and more companies choose to use equity pledge financing,we can see that in recent years,both the number of pledge or pledge ratio showed a rising trend year by year.LETV as the government to support the development of new cultural industries,with the Internet industry high risk,high investment industry characteristics,the need for huge capital investment and professional management.With the rapid expansion of the company's business,the shortage of funds has become a bottleneck to curb the music development of the company,the equity pledge has become one of the most commonly used way of financing the controlling shareholder Jia yueting.In this paper,the music as the research object,combined with the specific financial statement data and the company's external announcement,the equity pledge financing way to carry out a comprehensive multi angle analysis.On the one hand,the majority of the equity pledge to ease the music as a huge financial pressure,but a number of times a high proportion of equity pledge makes music as a business risk increases,the community has been controversial.Finally,from the strengthening of the shareholder equity pledge behavior regulation,to encourage small and medium-sized shareholders to actively participate in the business activities of enterprises,increase the transparency of information disclosure,equity pledge financial institutions to strengthen the equity pledge behavior control audit four aspects proposed deal with the negative effects of equity pledge,hope LETV to further standardize the equity pledge behavior,improve corporate finance the way,also provide a reference for formulating the financing strategy of other Internet new media enterprise.