Research On The Encroachment Of The Interests Of Major Shareholders Under Equity Pledge

In recent years,the financing problem of private enterprises has not been well solved,equity pledge has become the majority of private enterprises access to convenient financing straw.Equity pledge has become the norm,and major shareholders are the main force of equity pledge.However,with the sharp adjustment of China's capital market in 2018,the annual decline rate has become the second largest in history.The risk of equity pledge has been exposed,and the research on equity pledge has become more and more important.Although the pledge of equity by major shareholders is their own behavior,it will also have a positive or negative impact on listed companies,among which the negative impact needs more attention and research.In this paper,the shenzhen stock exchange listed company make a new big shareholders kang kang group to study the equity pledge,found that a large proportion of pledge of deviation degree aggravate shareholders cash flow rights and control makes the benefit expropriation of significantly lower cost,and through the concrete analysis also confirmed the kang group empty did of the company through various means.This paper makes a brief summary of the present situation of equity pledge of listed companies in China and studies the pledge behavior of major shareholder Conrad group by using the case analysis method.In the process of case analysis,the paper first introduces the situation of Conrad company and the internal and external pledge background,and speculates the possible pledge motive.Then the analysis of the pledge process and ownership structure shows that the degree of separation of the two rights of Conrad group is great and the degree of ownership balance is low,so the cost of encroachment on the company's interests is low and the encroachment may be induced.Then it analyzes the extent of the encroachment of the major shareholders on the company before and after the pledge and finds that the encroachment of interests is intensified.In the end,this paper expounds the possible impacts from the perspective of shareholders and shareholders by using the event research method and residual regression model,and gives some enlightenment and Suggestions on how to prevent controlling shareholders from encroaching on the interests of listed companies through equity pledge from the perspective of companies and supervision,which has certain practical significance.