Risk Analysis And Prevention Of Equity Pledge Of Private Listed Companies

In recent years,the financing channels of private enterprises have decreased,and the increase in financing costs has become a key issue that plagues various private enterprises.Therefore,the financing method of equity pledge has been favored by more and more private enterprises in recent years.On the one hand,equity pledge is a convenient and low-cost method for private enterprises to obtain sufficient cash in a short period of time.Stream helps to maintain the company's demand for funds in the short term,as well as the need for new business expansion;on the other hand,the pledge of equity is easy to be valued,and it does not require other companies to re-guarantee the tedious and risky characteristics of the private company.However,academics often have many criticisms of this method of equity pledge,believing that it has a negative impact on companies and will cause large shareholders to infringe the rights of small and medium shareholders.However,this article believes that as the phenomenon that private enterprises have to pledge equity has become more and more obvious,it is not comprehensive and meaningful to look at the negative results brought about by the use of equity pledges to private enterprises.Therefore,this article proposes to analyze the motives of private enterprise equity pledges dynamically,and analyze the pledge motives of outstanding private enterprises and various risks in the pledge process from a series of measures before,during and after the pledge has problems.Make recommendations and guidance for outstanding private enterprises according to local conditions.Senyuan Electric selected in this article is a good case.On the one hand,Senyuan Electric was the leading enterprise of switching voltage components,and its controller was the richest man in Xuchang,Henan.As a once powerful private enterprise,Senyuan Electric is also facing many problems such as fierce business competition and declining gross profit margin.Therefore,based on the actual situation,this case explores the motives of Senyuan Electric before equity pledge,during equity pledge,and after equity pledge,and combines the capital flow of equity pledge,the company's financial data,and the company's affiliated companies.And the company's stock price fluctuations and other evidence prove that the motivation of Senyuan Electric's equity pledge haschanged from positive to negative,from active to passive.Finally,this paper proposes risk avoidance measures for Senyuan Electric and private enterprises such as Senyuan Electric from two aspects of risk identification and risk prevention to help our private enterprises develop better.