Research On SW Environmental Protection Equity Pledge Risk

In recent years,due to the impact of policies such as financial risk prevention and financial deleveraging,the probability of credit exposure risk outbreak in China has increased significantly,reaching the peak level since 2015.With more and more listed enterprises and small and medium-sized enterprises facing financing difficulties,equity pledge financing,as an efficient,flexible and low-cost financing method,has been favored by the majority of enterprises.Since 2018,the risks of equity pledge in the Ashare market have begun to surface,and there have been many risk events such as shareholders' encroachment,corporate equity pledge defaults and forced liquidation of pledged shares.In conclusion,the identification,analysis and prevention of equity pledge risk of listed companies cannot be ignored.This paper first introduces the concept and background of equity pledge.SW Environmental Protection company is selected as the case study object to study the risk of equity pledge.This paper first gives a brief description of SW environmental protection company and equity pledge motivation.Then it analyzes and studies SW environmental equity pledge behavior from four aspects: market risk,closing risk,maturity risk and control transfer risk of stock price fluctuation.Based on the study of SW Environmental Protection's equity pledge financing,the following conclusions can be drawn: First,SW environmental protection company's strategy is too aggressive,and the matching degree of its own scale and capital strength is not taken into account when conducting equity pledge financing.Secondly,SW environmental equity pledge will have a negative impact on its stock market volatility.In addition,according to the signal transmission theory,when the stock price of a company falls below the warning line or the liquidation line,the market investors will panic and trigger the selling behavior,which will lead to the continuous decline of the stock and make the company face a high risk of liquidation.With the expiration date of pledged shares approaching,the company will face the risk of payment due and even the risk of control transfer,which will greatly affect the company's continuing operation.Therefore,this paper hopes to provide some references and warnings for the equity pledge of listed companies in China through the case study of SW environmental protection equity pledge,so as to promote the healthy development of China's capital market.The innovation of this paper lies in the case study of the listed company's overall equity pledge financing risk analysis.In addition,qualitative analysis and quantitative analysis are combined to conduct qualitative analysis on equity pledge and stock market risk through event research method,and the historical simulation method of Va R measures the equity pledge rate of the company and conducts quantitative analysis on the liquidation risk of the company.Finally,based on the case study of SW environmental equity pledge financing risk,this paper puts forward corresponding countermeasures and Suggestions for listed companies.