Research On The Pledge Of The Shareholding Of Major Shareholders

In recent years,China's equity pledge market has entered a stage of rapid development.The scale of equity pledge in the main board market,small and medium-sized board,GEM market and the New Third Board market continued to rise,basically forming a situation of“no stocks and no pledges”.It is worthy of recognition that the equity pledge is obviously superior to other financing methods in terms of financing convenience and financing scale,and plays a pivotal role in the external financing of major sections.However,the equity pledge is also a sharp double-edged sword,and the problems caused by the disorderly large shareholder equity pledge cannot be ignored.Since 2015,the author has been concerned about the potential risks of equity pledge in the A-share market,especially in the GEM.Lexmark.com,Shenwu Environmental Protection and other GEM listed companies continue to explode large shareholder equity pledges,and the GEM market has become the“star'' section of the equity pledge crisis.Therefore,it is of great practical significance to study the equity pledge of the major shareholders of the GEM,The uniqueness of this paper not only focuses on the GEM,but also uses several cases to analyze the issue of equity pledge of the major shareholders of China's GEM.Cases such as LeTV,Huayi Brothers,and Shenwu Environmental Protection were interspersed in the paper,and ten high-equity equity pledge companies were selected to carry out relevant data.Firstly,it introduces the general pledge of the majority shareholder of China's GEM enterprises.It points out the characteristics of high-tech,high-risk,high-growth and high-funding of China's GEM enterprises.Equity pledge has the advantages of convenient financing,large financing scale and low financing cost.At present,the market scale of equity pledge of China's GEM enterprises is at a high level.Location,some companies also appear the phenomenon that the pledged equity is closed.Secondly,it points out the problems of the equity pledge of the major shareholders of the GEM.Firstly,from the financial point of view,analyze the impact of high ratio equity pledge on the finance of GEM companies.Financial indicators show that the financial data and stock prices of high-yield equity pledge companies are not performing well,and even some corporate financial data are plummeting.After that,it analyzes the problems brought about by the equity pledge of the major shareholders of the GEM.Through relevant theories and multiple case studies,we focus on corporate management under the influence of major shareholders,involving corporate governance mechanisms,corporate strategy,corporate leverage,corporate risk preferences,major shareholder encroachment on corporate cash flow,interest transfer,brand and reputation.The problem.At the end of the paper,the countermeasures and suggestions are put forward.According to the three aspects of perfecting the equity pledge system,improving the corporate governance ability and solving the company's leverage ratio,the paper gives targeted suggestions,tries to solve the problems caused by the equity pledge of the major shareholders,and promotes the healthy development of the equity pledge market and the pledge equity enterprise.