Case Analysis Of Major Shareholders' Equity Pledge Financing Of Nanfeng Ventilator Co.,Ltd

With the development of China's capital market,equity pledge financing has now become an important means of financing.With the development of China's capital market,equity pledge financing has now become an important means of financing.Without the need to transfer the actual control of the enterprise,major shareholders can raise a large amount of funds in a short period of time through equity pledge financing.However,due to the pledge of stock rights,the cash flow rights and control rights of major shareholders are separated from each other.The increase of pledge ratio may intensify the motivation of major shareholders to encroach on interests.In addition,the equity pledge will lead to the transfer of major shareholder changes in equity risks to the pledge.And equity pledge will indirectly have a negative impact on the performance of the listed company.Therefore,considering the scale of equity pledge and risk analysis,it is of great practical significance and value to study the issue of equity pledge financing of major shareholders.Firstly,this paper makes an extensive study of the relevant literature and basic theories on the financing of major shareholders' equity pledge in listed companies.And this paper describes and summarizes the current situation of equity pledge.The article takes the listed company Nanfeng as the research object,to study the issue of the equity pledge risk of the major shareholders.In the process of case analysis,this paper studies the financial situation,equity structure,equity pledge process and the results of equity pledge of Nanfeng.In addition,the paper further analyzes the impact and risks of major shareholder equity pledge,as well as risk prevention measures.Through case analysis,it is known that major shareholders pledge their shares on a large scale in a high proportion for the motives of personal finance,the expropriation of interests and the transfer of risks.While the equity pledge of major shareholders has revitalized the restricted shares,it has also aggravated the non-effective investment behavior of listed companies,and indirectly led to the decline in corporate performance and the collapse of stock prices.From the perspective of risk,the main risks arising from the equity pledge of the major shareholders of Nanfeng include the risk of transfer of control rights,the moral hazard of major shareholders and the risk of poor management of listed companies.Finally,this article gets enlightenment from the case analysis,and discusses the risk prevention measures from the following three aspects: the pledgee's control and management,the strengthening of the company's internal governance and the improvement of relevant laws and regulations.The paper clarifies the mechanism of risks caused by the financing behavior of major shareholders' equity pledge,widens the research on the financing behavior of equity pledge,and has certain enlightenment for listed companies to give full play to the advantages of equity pledge financing,regulate financing behavior and protect the legitimate rights and interests of the pledgee and shareholders.