| Traditionally,equity pledge is one of the pledge of rights.With the development and maturity of China's capital market,equity pledge is becoming more and more popular among listed companies.In today's economic situation,as a financing channel,pledge of equity has several advantages.First,pledge of equity provides an additional financing method for the company,making the company's financing methods diversified.Secondly,pledge of equity can transform the static asset of equity into dynamic asset.Pledge of equity transforms the static assets of equity held by the controlling shareholders into liquid cash.After such a transformation,the effective use of resources is realized and the liquidity crisis of listed companies and controlling shareholders is solved to a certain extent.At the same time,the controlling shareholders will not lose control of the company as long as they can repay the principal and interest on time.However,the pledge of equity also has great defects.Listed companies that pledge equity indicate that their controlling shareholders or listed companies have liquidity crisis.Moreover,once the controlling shareholder fails to repay the loan in time,the controlling shareholder will face the risk of control transfer and the company is likely to change ownership.Equity pledge will also bring some agency problems,especially the second kind of agency problems between major shareholders and small and medium shareholders,which will increase the agency cost of the company.These possible adverse factors make pledge of equity become a hot topic.Xinwei Group,a communications company founded in 1995,went public in September 2014 through backdoor zhongchuangxin Test.Affected by the macro environment in recent years,the company's performance declined significantly.Since its listing,Xinwei Group has carried out a large number of overseas expansion,and the controlling shareholders have raised funds by means of equity pledge since 2016.Then,through reading a large number of literatures related to equity pledge at home and abroad,this paper takes equity pledge of listed companies as the research object,and takes Xinwei Group as the research case to analyze why the controlling shareholders of Xinwei Group pledge equity and the economic consequences brought by equity pledge to Xinwei Group.It is hoped that some Suggestions applicable to listed companies in China can be obtained.First of all,this paper will elaborate the current background of equity pledge and the research significance of equity pledge,and use the knowledge of the author to outline what equity pledge is.This paper also USES several theories related to equity pledge.Then,this paper analyzes the influence of equity pledge of xinwei Group's controlling shareholders on the company's share price,corporate governance,corporate performance and corporate stakeholders.Finally,by analyzing the case of equity pledge of xinwei Group's controlling shareholders,this paper draws five conclusions and puts forward five targeted policy Suggestions from the three perspectives of listed companies,regulators and investors.Xinwei group was caught in the liquidity crisis and its financing channels were restricted,so it had to raise funds through equity pledge.Frequent equity pledge bya high proportion of the controlling shareholders of Xinwei Group has damaged the company's financial condition,resulting in a decline in the company's performance year by year.Moreover,with the increasing proportion of equity pledge,the company's stock price has fallen off a cliff,causing heavy losses to investors.For China's a-share market listed companies equity pledge,A convenient,this article from three angles of listed companies,regulators and investors are put forward to increase way of raising funds,regulate information disclosure of listed companies,improve the listed company's internal management methods such as policy recommendations,which to A certain extent,the controlling shareholders of listed companies equity pledge risk to A minimum. |
