Research On Shenwu Environmental Protection's Equity Pledge And Financial Flexibility Of Listed Company

In recent years,China's economy has developed rapidly,and the scale of demand for funds by various companies and shareholders has been increasing.However,the supervision of reduced holdings and fixed-income financing has become stricter.Under the deleveraging situation,the scale of various financing methods has shrunk Loan interest rates are also rising.In contrast,the operation of equity pledge is simple,the restrictions are more relaxed,and after the pledge,shareholders 'control of the listed company still exists,and it has become a way for shareholders of listed companies to solve the capital needs for a while.In 2016,The proportion of equity pledges of the controlling shareholders of listed companies continues to rise,and the total market value of A-share pledges has skyrocketed.However,since 2018,the risk of equity pledges has been continuously exposed.Various cases of liquidation due to equity pledges,changes in actual controllers and even financial crisis have occurred frequently.Equity pledges have become bad news for investors.Financial resilience as a company's ability to allocate financial resources to respond to crises,once reduced means that the company's ability to resist risks is weakened,so the financial crisis of listed companies often occurs after the abnormal performance of the company's financial resilience.Therefore,under the background of frequent pledges of equity pledges,the study of financial resilience has become a problem that deserves attention.The behavior of controlling shareholders 'equity pledge financing for different purposes on the financial resilience of listed companies and their impact paths have been studied.necessity.Scholars at home and abroad have currently verified the economic consequences of equity pledges through empirical research,such as affecting information disclosure,investment behavior,corporate value,etc.,but no one has studied its impact on financial flexibility;in addition,most of the current research is from agency issues From the perspective of the perspective or the risk of transfer of control rights,there are very few analyses that combine the two perspectives to study the economic consequences from a single perspective.At the same time,the research methods are mostly empirical studies,and lack of specific case analysis.Under this background,this article takes the shareholder's equity pledge as the starting point,and constructs a research framework on the impact of equity pledge on the financial flexibility of listed companies from a positive perspective(prevention of control transfer)and a negative perspective(interests embezzlement).Adopt the research methods of literature research and case analysis,and select Shenwu Environmental Protection as a typical case.First,it introduces the development status of China's equity pledge market and case companies.It uses three types of indicators to measure the changes in the financial flexibility of listed companies and obtains a controlling share.The changes of Shenwu Environmental Protection's financial elasticity since the shareholder's equity pledge;after that,the two paths of the impact of positive and negative motives on the financial elasticity of listed companies in the two stages after the large shareholder's equity pledge were studied,and the process of affecting financial elasticity was analyzed And analyzed the performance changes of listed companies under low financial elasticity.The final conclusion is as follows:First,the controlling shareholder's equity pledge will first affect the behavior of the listed company based on positive motivation,and under certain conditions,the positive action will be converted into negative motivation;second,the controlling shareholder's equity pledged behavior will result in positive motivation.The financial flexibility of listed companies is reduced.Third,the negatively motivated behavior of the controlling shareholder after pledged equity will reduce the financial flexibility of listed companies.The main contribution of this article is to establish the path of the impact of large shareholder equity pledges on the financial flexibility of listed companies from both positive and negative perspectives,broaden the research ideas and perspectives of equity pledges,and enrich the theoretical content of the economic consequences of equity pledges;Studying the two types of impact paths of large shareholder equity pledges on Shenwu Environmental Protection's financial flexibility can serve as a warning to other listed companies that also have large shareholder equity pledges.provide reference for other private listed companies to raise funds and operate management,and provide reference for other Listed companies that ignore the importance of financial flexibility in their development are reminded accordingly.