Evaluation Of Equity Pledge Financing Amount Of Listed Companies' Major Shareholders

Equity pledge,as a financing method sought after by Chinese listed companies,has enriched the investment and financing channels of China's financial market,and is conducive to the transformation and development of enterprises and the real economy.However,with the expansion of the equity pledge market,its risks are also accumulating.The risk performance of equity pledge is that when the stock price drops sharply,the pledgor is unable to cover the position as agreed,or the pledger appears to have serious liquidity risk,unable to repay the debt,and eventually defaults.In order to recover the principal,the pledgee generally chooses to sell the held pledged stocks,which causes the stock price to fall further.If there are a large number of equity pledge default events in the market,it is easy to induce systemic financial risks.The report of the 19 th CPC National Congress clearly stated that it is necessary to improve the financial supervision system and keep the bottom line that no systemic financial risks occur.Therefore,it is important to prevent financial risks brought by equity pledge.This paper analyzes the current situation of China's equity pledge and finds that China's equity pledge market participants are often major shareholders of listed companies and are characterized by a high proportion of pledges.If there is a largescale breach of equity pledge,the stability of the company's equity structure will suffer major challenges,affecting the normal operations of listed companies,and pledgees as financial investors will also suffer major losses,which will affect the healthy development of the entire economy and society.At the same time,according to statistics,since 2007,the pledge of equity in China has involved the freezing of share holders.The number of state-owned legal persons is huge.As the lifeblood of our economy,if the state-owned economy is exposed to the risks of equity pledge,the degree of harm is self-evident.One of the keys to preventing the risks brought by equity pledge and promoting the healthy development of equity pledge is to reasonably determine the financing amount and prevent the risk of default from the source.Based on the real option theory and the VaR theory,this article analyzes the applicability of the real option theory in the valuation of equity value and the VaR theory in the evaluation of the pledge rate,and combines the characteristics of different models in these two theories and the particularity of equity pledge financing.The BS option pricing model and the GARCHVaR model were selected to construct an evaluation model of equity pledge financing amount.At the same time,the equity pledge transaction of Xining Special Steel was selected as a case,and the evaluation model constructed in this paper was used to analyze the transaction to verify the validity of the evaluation model.There are no small risks in current equity pledge financing.Through theoretical and case analysis,this article aims to provide a way for the key part of the equity pledge financing business,that is,the evaluation of financing amount,to try to prevent and control equity pledge risk.