Research On The Risk Of Equity Pledge Of The Controlling Shareholders Of DY Company And Prevention

Share pledge financing(SPF)business has developed rapidly in recent years.As a financing method that can convert shareholder equity from a static "stock" into a dynamic "energy",it has become an indispensable way for large shareholders of listed companies to obtain capital liquidity.However,there are "two sides" in all things,and equity pledges also bring many risks to enterprises.In the past two years,large shareholder equity pledge liquidation has occurred frequently,and even the controlling shareholders of hundreds of listed companies are forced to transfer their own equity Control of the listed company is transferred.In addition,the equity pledge has increased the separation of control rights and cash flow rights of large shareholders,exacerbated the agency problem,and it has evolved into a means for some controlling shareholders to hollow out listed companies.The interests have been severely damaged,and the pressure on prevention and control is also extremely severe.Therefore,in order to help companies representing more stakeholders to reduce the negative impact of equity pledges on them,we first need to be able to correctly understand the risks that equity pledges may bring to the company,and at the same time,put forward practical and reliable Preventive measures in advance are also key issues that need to be paid attention to by all parties and need to be resolved.The thesis adopts the method of combining literature research and case analysis.First,it reviews and reviews the literature from three perspectives of equity pledge financing motivation,economic consequences,and risk response.Secondly,it summarizes the characteristics of the equity pledge of the controlling shareholders of listed companies.Next,a case was introduced to explore the process of loss of control of the controlling shareholder of DY Company,the motivation of equity pledge and the characteristics of equity pledge behavior,and on this basis,the event research method,Z-score scoring model,financial index analysis method and other methods were used to Analyze and identify the risks that equity pledges bring to enterprises.Finally,put forward reasonable and effective risk prevention measures and suggestions.Among them,this article believes that equity pledges will bring market risks to enterprises,and a high proportion of equity pledges will affect the stability of corporate control.In addition,when the controlling shareholder faces the risk of control transfer and leverage because of the high proportion of pledged equity,it will induce them Larger market value management incentives and interest encroachment incentives are generated,and individual risks are passed on to the company,which negatively affects the company's operating performance and financial situation and increases financial risks.This article hopes to broaden the existing research ideas and perspectives of equity pledges through case studies of DY companies.to provide other listed companies with effective reference in the prevention of equity pledge risks,and to reduce the infringement of the interests of enterprises and small and medium shareholders due to equity pledge risks It will play a positive role in the future that equity pledge financing business can develop healthily in China's capital market and give full play to its due advantages.