Research On The Risk Control Of Fengshengyang's Equity Pledge

Equity pledge refers to a kind of financing behavior with the equity of the company as the guarantee.Equity pledge can alleviate the financing problems faced by the company in the development process,increase the financing channels of the company,control the financing cost of the company,and provide financial support for the development of the company.As an important part of economic growth,high-tech enterprises have a large demand for capital in the early stage of development,but another typical feature of high-tech enterprises is high risk and unstable income,especially the large proportion of intangible assets does not match the traditional financing methods of banks.Therefore,it is difficult for many high-tech enterprises to solve the capital dilemma through traditional financing methods,which affects the transformation of achievements and hinders the development of the company.Taking fengshengyang company as an example,this paper deeply analyzes the process,motivation,risks and causes of its equity pledge management,and puts forward targeted suggestions to prevent the risks of equity pledge.The equity pledge made by the controlling shareholders of fengshengyang company is to obtain funds through restricted shares financing.But in the process of stock pledge,there are some market risks,financial risks,moral risks,credit risks and operational risks.In this paper,VAR model is used to analyze the risk of equity pledge of fengshengyang company,and comprehensive efficiency coefficient method is used to analyze the financial risk of fengshengyang company.However,the shareholders of fengshengyang company continue to pledge their shares,which leads to the increasing risk of the company.The existing measures can not well avoid and prevent such risks.The research of this paper finds that fengshengyang company has not set up independent directors,the company's board of directors is in vain,the fund use obtained by pledge is not standardized,the risk awareness of equity pledge is lack,the risk control is weak,and the external supervision is weak,which are the reasons for the final exposure of equity pledge risk of fengshengyang company.How to propose effective solutions to these problems is this paper The significance of this study.The research of this paper shows that fengshengyang company should clearly stipulate the proportion of equity pledge in the articles of association,improve the internal control system of the company,such as setting up independent directors to represent the interests of the majority of small and medium shareholders.VAR model is used to measure the risk of each pledge,enhance the awareness of risk management and control,use comprehensive efficiency coefficient method to judge the risk of equity pledge,judge whether the company has the ability to repay,and track the use of funds after the pledge.At the same time,the regulatory authorities should make clear restrictions in the relevant laws and policies of the new third board.For companies that do not comply with the regulations,they should increase the punishment and require them to disclose information regularly,so as to effectively restrict the unreasonable stock pledge behavior in the new third board market.The research of this paper is helpful for fengshengyang company to further improve the risk control of equity pledge and standardize the behavior of equity pledge.At the same time,this study also provides a reference for other similar new third board companies to improve their risk control ability when they pledge their equity,and provides a reference for the new third board market to strengthen the management of pledge risk.