Research On Motivation And Risk Of Equity Pledge Of Controlling Shareholders Of Huayi Brothers Film And Television Company

Film and television enterprises belong to the cultural and creative industries and asset-light industries.Compared with traditional enterprises,in the absence of heavy assets,properties,production lines,etc.as collateral,film and television enterprises generally take the form of equity pledge financing.Huayi Brothers,as the first listed company in the film and television industry vigorously supported by the government,carried out the first equity pledge in 2011 and has maintained a high proportion of equity pledges.Is the motivation motivated by interests or financing needs? What risks does equity pledge bring to enterprises? How to prevent it? Urgent research.Based on theories such as control rights and cash flow rights,this article first analyzes the possible motives and risks of the equity pledge in the film and television industry based on the literature about the financing of the film and television industry,the motivation of equity pledge,and the equity pledge risk;For example,combined with the company’s strategy,financial situation,profitability and capital chain,it analyzed the motives of Wang Zhongjun and Wang Zhonglei’s equity pledge,as well as the risks and causes of listed companies,and finally put forward risk countermeasures.The research findings in this paper are as follows:(1)Huayi Brothers currently conducts equity pledge in the case of poor profitability,weak solvency,and shortage of funds.The real motive is the motivation of financing demand.(2)The controlling shareholder’s high-frequency and high-value pledge of equity made investors lose confidence in Huayi Brothers,causing a sharp drop in stock prices.When the stock price falls below the closing line,the controlling shareholder cannot redeem the equity,which may cause the risk of transfer of control.If the option to redeem the equity,the pressure on the capital will increase and there will be certain financial risks.(3)The controlling shareholder of Huayi Brothers through a high proportion of equity pledge financing will also aggravate the separation of control and cash flow rights of the company,resulting in the risk of encroachment.(4)The reasons for these risks are mainly the lack of relevant regulatory regulations on the restriction of the shareholder’s equity pledge ratio,and the existence of certain loopholes in corporate governance and internal control.The research conclusions of this paper,through the research and analysis of the motives,risks and countermeasures of the equity pledge of the controlling shareholders of the film and television industry,improve the equity pledge supervision system,guide and standardize the equity pledge behavior of the controlling shareholders of listed companies and avoid the risk of equity pledge,which has certain reference significance.