The Analysis Of Equity Pledge Financing Of Cultural And Creative Enterprise

In recent years,Cultural and Creative Enterprises in China have risen up one after another and in fact they achieve excellent operational results.With the continuous development of Cultural and Creative Enterprises,many problems arise such as much light assets like copyright and property rights,short of funds and hard to raise funds because of few fixed assets.However,thanks to the rapid development of capital market and government efforts,the ways to raise money for Cultural and Creative Companies are diverse.One of the most attractive financing methods is equity pledge.The advantages of convenient and easy-to-circulate equity of listed companies make the advantage of equity as a pledge to obtain loans from third-party institutions.This is mainly reflected in the fact that the equity pledge financing process is simple,the restrictions are few and the financial institutions are willing to accept high-quality equity as pledge.Conducting a loan business.At present,the number of equity pledges on the A-shares and the proportion of equity pledges are rising year by year,indicating that more and more listed companies choose equity pledge as a financing method.As an emerging cultural enterprise vigorously supported by the government,Huayi brothers is characterized by the shortage of capital and it requires huge capital investment and professional management.Huayi brothers not only focuses its main business on films and television entertainment,but also expands its real scene entertainment,Internet entertainment and other businesses.With the rapid expansion of business,company has gradually been shortage of funds.Therefore,Huayi brothers has been constantly expanding its financing methods,and equity pledge has become one of the most commonly used financing methods for the company's controlling shareholders due to its advantages of convenience and rapidity.Based on Huayi brothers as the research object,this thesis is first and foremost with the introduction of the company and its equity pledge.Then analyzes comprehensively on the basis of Huayi brothers' specific financial annual report and external equity pledge announcements.Concludes that with the increase of equity pledge ratio of controlling shareholders Wang Zhongjun and Wang Zhonglei,the company's financial indicators show a downward trend.Large shareholders' repeated and high proportion pledge increases company's operational risk.Equity pledge is controversial and as a result,the performance in the stock market is bad.Moreover,a high proportion of equity pledge separates the control rights and cash flow rights of controlling shareholders,which has a negative impact on the value of the company.Finally,by proposing the hypothesis that equity pledge will have an impact on corporate value,a regression model for the hypothesis is built and analyzed.It is concluded that most beneficial to the company's value for Huayi brothers to keep the pledge ratio of equity at about 55%t.It provides reference for the Cultural and Creative Industry.Finally,this thesis gives advice that the firm,financial institutions and government departments should work together.By perfecting the internal control,strengthening information disclosure,improving the terms of the contract,credit investigation before post-loan review and the system of equity pledge to regulate the equity pledge,making the pledge system of cultural and creative enterprises better.