Research On The Financing Risk Of Stock Pledge Of The Main Shareholders

At present,the pledge of stockholders' equity in China's listed companies is increasing,and the situation of equity pledges has changed from a small initial proportion and a low frequency to a large proportion and a high frequency.Most of the listed companies' equity is relatively concentrated,making the conflicts of interest between major shareholders and small and medium shareholders even more obvious.During equity pledge,the major shareholder's equity pledge financing does not require the transfer of shares held by it.The financial status of listed companies and the volatility of stock prices in the stock market will affect the pledged equity,which will affect the development of companies and the rights and interests of shareholders.The pledgee accepts its risk while accepting the equity pledged by the major shareholder.When the risk is transferred to the pledgee,it motivates the motive of the large shareholders to invade and the interests of the listed company and related stakeholders will be harmed.This article takes Shenzhen Hector Group Co.,Ltd.as a case to introduce the situation of the company's equity pledge,analyzes the risk brought by the shareholder's equity pledge,and draws corresponding enlightenment according to the risk brought by the equity pledge.First of all,this paper introduces the research background and significance of the study.The related literature is referenced from both domestic and overseas aspects,and lays a foundation for subsequent analysis.Secondly,it introduces the related concepts,theoretical basis,related systems of equity pledge and listing in China.The current status of the company's equity pledge industry;once again,introducing the case of Hector Group's major shareholder equity pledges,including the Hector Group's profile,financing process,and the flow of equity pledged capital;and finally,analyzing the motivation and existence of Hector Group's large shareholder equity pledges.The risk,draw conclusions and inspirations.This paper uses the data from 2015 to 2017 of Hector Group as a support,and uses the literature research method,case study method,comparative analysis method,and financial analysis method to analyze the financing risk of Hector Group's major shareholder equity pledges.The results of the study indicate that the large shareholder's frequent pledge of a large proportion of shares will lead to moral hazard,jeopardize the controlling shareholder and exacerbate market risks.According to the results of the study,we can draw inspirations: Improve corporate governance to deal with moral hazard,enhance the fundamentals of listed companies,address the risk of transfer of control rights,strengthen the vigilance of stakeholders and respond to market risks,and improve relevant laws and regulations on existing stock pledges.When the major shareholders pledge their shares,they should raise their awareness of financing risks,thereby reducing the risk of large shareholder equity pledge financing.