Research On The Risks And Prevention Of Zangge Holding Company Large Shareholders' Equity Pledge

As a new financing method,equity pledge is more and more popular with large shareholders of listed companies because of its low cost,fewer restrictions,and convenience.In recent years,the scale and proportion of equity pledges in the a-share market have continued to rise.It has almost formed a state of no stakes.With the frequent occurrence of defaults by major shareholders in the market,the risk of equity pledges has gradually emerged,which has sounded the alarm of the equity pledge market.Although equity pledges can alleviate companies or individuals the dilemma of shortage of funds,but it will cause the deepening of the separation of the powers of the large shareholders,which will lead to a series of risks.Whether it is a large shareholder of a listed company or other stakeholders,it should pay attention to the risk of equity pledges.At present,the academic industry often analyzes the risks of equity pledges through empirical methods of large samples,which may ignore the special circumstances that exist in individual cases.Under this background,this article analyzes the equity pledge financing case of the major shareholder of Zangge Holdings,in-depth research the risks caused by equity pledge and targeted specific preventive countermeasures are proposed,which is not only a case study of supplementary equity pledge theoretical value,but also for stakeholders to prevent the risk of equity pledge has practical significance.This article first discusses the background and significance of the topic,and sorts out the motivation,risk types and risk prevention of large shareholder equity pledges in domestic and foreign literatures.Secondly,Zangge Holdings,which has large shareholder frequent and high percentage equity pledges,is selected as the research Objects,introduce the process and motivation of the pledge of large shareholder equity of the listed company;again,through the combination of qualitative and quantitative methods,supported by specific financial data,the financial index analysis method,economic value added,event research method and Z-score model and othermethods to analyze the moral hazard,market risk and disposal risk of the company's large shareholder's equity pledge.Finally,based on the reasons for the equity pledge risk,it proposes targeted preventive countermeasures.The study found that the equity pledge will deepen the separation of the rights and interests of the major shareholders and enhance the motivation of the major shareholders to embezzle the interests.The major shareholders may use large amounts of capital occupation,high premium related transactions,external large guarantees and other methods to encroach on the company's assets,and has a negative impact on the company's financial situation and corporate value,which exposes the company to moral hazard.In addition,the frequent high proportion of equity pledges by large shareholders will cause negative market effects,aggravate the market risk arising from stock price fluctuations,and increase the disposal risks faced by pledged shareholders and listed companies.This article hopes that other companies can pay attention to these risks when using equity pledge financing,and ultimately can promote the healthy and sustainable development of China's capital market under the correct use of equity pledges.