Analysis On The Influence Of Pledge Of Major Shareholder's Equity On The Value Of The Company

Due to the high circulation and liquidity of equity and the relatively good quality of the listed company,the equity of listed companies is easy to be transferred in the secondary stock market,and the transaction cost is relatively low.Therefore,equity pledge has become the preferred financing method for many listed companies facing financial constraints.The major shareholders converted the original equity into the required cash flow through the pledge of equity,and realized the flow of the company's cash flow.At the same time,the stock pledge behind also hide a huge risk.With the frequent occurrence of the stock pledge explosion of the controlling shareholders of listed companies in 2018,various subjects pay special attention to the stock pledge behavior.The regulatory authorities also introduced new rules on stock pledge in 2018,which has become the most stringent new rules on the control of stock pledge in history,including strict regulations on the pledge rate,the parties involved and the securities brokers.In this context,this paper begins to make an in-depth study of equity pledge.In the case of equity pledge being liquidated in 2018,the majority controlling shareholders' equity pledge accounts for a high proportion of the total capital stock,up to more than 30%.However,the case study in this paper has not yet reached 30%.Therefore,this case is selected to study how it will affect the company's value.Based on principal-agent theory,this paper with regard to science and technology major shareholder equity pledge as analysis object,based on the analysis of large shareholders equity pledge events and characteristics on the basis of the pledge,respectively from the equity pledge before and after the deviation degree of control and cash flow right,the pledge before and after the market value of the contrast of the book value of the company before and after the contrast and pledge to the research of science and technology major shareholder equity pledge to the impact of the value of the company,in the study of equity pledge affect the value of the company in the process of using the method of event study,tobin Q value model,the combination of qualitative and quantitative methods,such as,Then it analyzes the reasons why the pledge of major shareholders' equity has a negative effect on the value of the company and puts forward corresponding Suggestions.Through the research on the impact of the pledge of major shareholders' equity on the company's value,this paper finds that even if the pledge of major shareholders' equity does not exceed 30% of the company's total capital stock,it will still have an adverse impact on the company's value.Through this study,it is shown that when the proportion of major shareholders' equity pledge is too large for their shareholding,they should raise their vigilance in time to prevent major shareholders from transferring funds through equity pledge and encroachment on the company's interests.Research conclusion of this article at present most of scholars agree that when 36.53% equity pledge proportion is larger than the threshold value,the company's equity pledge will reduce the value of the company's paper for a rich,also hope to be able to other major shareholders of listed companies with similar characteristics of equity pledge to provide the corresponding reference value.