The Influence Of Large Shareholder Equity Mortgage On Enterprise Value And Governance Strategy

Through the media reports and annual reports of Listed Companies in recent years,we can find that the probability of equity pledge as a new financing method is gradually increasing,and it is gradually widely used in major companies with its unique liquidity and convenience.Equity pledge will have a certain impact on the value of enterprises.As to what impact it will have,further research is needed.Studying the impact of equity pledge on enterprise value is helpful to improve the content of management and governance,to help enterprises grow faster and better,and has practical guiding significance for the operation of enterprises.This paper mainly uses case analysis method to study the impact of Yaxing Chemical's large share pledge on enterprise value and its governance strategy.Firstly,the research background,significance,content,method and literature review at home and abroad are elaborated.Secondly,the content of equity pledge and enterprise value theory is elaborated.The related concepts include the concept and risk of equity pledge,the value orientation of equity pledge and the negative mechanism of equity pledge on enterprise value.The positive impact mechanism of equity pledge on enterprise value;Thirdly,on the basis of relevant theory,this paper introduces the general situation of equity pledge of Yaxing Chemical's major shareholders and the motivation of equity pledge of Yaxing Chemical's major shareholders by case analysis.The main motivation of equity pledge of Yaxing Chemical's major shareholders is that large shareholders use equity pledge to open up financing channels,large shareholders maintain or increase control rights and large shares.East gains more benefits of control.On this basis,this paper analyses the impact of the equity pledge of Yaxing Chemical's major shareholders on the enterprise value,mainly involving the agency problems caused by the equity pledge.The agency problems are mainly the changes of control rights and cash flow rights before and after the equity pledgeof Yaxing Chemical's major shareholders,the impact of the equity pledge of major shareholders on the financial situation and sustainable operation of Yaxing Chemical,and the market reaction problems mainly refer to Asiatic Chemical's financial situation and continuous operation.The fluctuation of stock price,the change of market value of Yaxing Chemicals,and the adverse effects on enterprise value are mainly the impact on small and medium shareholders and creditors,the impact on listed companies,and the low profitability caused by the continuous negative net profit.Finally,the paper puts forward the governance strategy of the impact of Yaxing Chemicals' equity pledge on enterprise value,hoping to provide countermeasures.Slightly helpful to Yaxing Chemical.The main conclusion of this paper is to put forward the governance strategy of the impact of Yaxing Chemical's large shareholders' equity pledge on the enterprise value: fully disclose the information of the large shareholders' equity pledge,strengthen the supervision of the large shareholders' behavior,and improve the internal governance of the company.The innovation of this paper is to study the case of Yaxing Chemicals,collect the annual report of Yaxing Chemicals and the announcement of equity pledge,analyze the relevant statistical data,complete the analysis of the actual situation of equity pledge of Yaxing Chemicals through case analysis,and make a deep study of the impact of corporate value.