Research On The Stock Pledge Of Huaze Cobalt And Nickel Major Shareholders

The equity pledge is the pledge operation for the fund applicant to take the equity of the name as the credit condition to meet the threshold of the loan risk assessment and obtain the financing amount.Equity pledge is gradually becoming the most important financing method with its limited restrictions,low cost,short time and flexible trading.Major shareholders are more inclined to rely on the equity pledge path to obtain the required funds.The equity itself carries the attributes of strong liquidity and high turnover rate.The pledgee usually can obtain security guarantees,and the brokerage and other organizations are also more willing to cooperate with them.Moreover,the equity pledge will not change its identity as a major shareholder and satisfy the financing appeal,which makes the equity pledge financing model attract attention from all parties.However,through the analysis of the position of listed companies,the equity pledge is not completely negative.If a specific company has a formal pledge operation,but after being affected by internal and external variables,the major shareholder will not be able to pay the amount owed as scheduled,and the relevant equity will face the result of freezing,compulsory resale,etc.,and control is difficult to guarantee the return to the majority shareholder.Equity pledge financing activities from the side show us the potential intention of large shareholders to occupy public funds by virtue of their position.Equity pledge is likely to lead to a deterioration in the agency phenomenon in which control rights and cash rights cannot be coordinated.Major shareholders may gradually narrow the legitimate rights and interests of other shareholders by means of more difficult to capture,thus affecting the performance of listed companies.This paper collects,analyzes and draws on a large number of domestic and foreign literatures,combined with the concept of equity pledge,to determine whether the impact of large shareholders’ equity pledge on the performance of listed companies is the starting point of research,focusing on equity pledge moral hazard and market risk on Huaze cobalt nickel major shareholder A case study on equity pledge behavior.Firstly,this paper uses La porta’s calculation method to obtain the difference between the absolute value of Huaze Cobalt and the cash flow rights of the major shareholder before and after the equity pledge,which can reduce the short selling cost of the company and provide the controlling shareholder with the possibility of encroaching on the company’s interests.Machine.Secondly,through the comparative analysis of the company’s indicators before and after the equity pledge,it is found that the company’s financial performance has plummeted after the equity pledge.Finally,using the event research method to calculate the excess return rate and the cumulative excess return rate,we can find that the equity pledge behavior of the large shareholder of Huaze Cobalt and Nickel has a negative reaction to the short-term market.At the same time,it analyzes the stock price trend and finds that the stock price has continuously declined since the equity pledge,resulting in a negative The effect is that companies are vulnerable to delisting crisis.Through the above analysis,it was found that the high frequency and large proportion of equity pledge behavior of the major shareholders of Huaze Cobalt and Nickel Company had a negative impact on the company’s performance.Based on the case analysis,this paper proposes policy recommendations based on the research conclusions,in order to provide a useful supplement to the research on equity pledge and short-selling behavior in China.