Study On The Risk Of Equity Pledge Of Major Shareholders Of Listed Companies

In recent years,with the economic development,all types of enterprises are further exploring the market to seize opportunities.There are many financing channels available to open up the market,and shareholders are increasingly favoring the equity pledge financing model.In the equity pledge financing model,large shareholders do not need to transfer equity,they can obtain a large amount of funds in a short period of time.However,during the pledge of equity,the pledged equity will be affected by the operating performance of the listed company and the stock price fluctuation in the stock market.The stock price may fall or directly approach the pledge warning line or even approach the liquidation line,resulting in a burst of positions,affecting all shareholders.Equity and the development of listed companies.This paper takes Shenzhen Shenwu Energy Saving Co.,Ltd.as an example to analyze the types of equity pledge financing risks of major shareholders.Firstly,the research background and research significance of this paper are expounded,and the relevant theoretical basis is listed.The relevant literatures of domestic and foreign scholars are collated and reviewed from the perspectives of equity pledge financing risk type and equity pledge financing risk response.The process of equity pledge of Shenwu energy-saving major shareholder was introduced.The risks of the equity pledge of the major shareholder and the risk of equity pledge and the risk response measures that have been implemented were analyzed.Finally,conclusions and policy recommendations were drawn.Through research,it is found that the shareholder pledge behavior of the major shareholder has deepened the separation of the control rights of the major shareholder and the cash flow rights,which confirms the motive of the large shareholder to use the equity pledge to obtain a large amount of funds and carry out the interest encroachment.Under this circumstance,This paper puts forward five suggestions.The government should set up a policy rescue fund.The company should set an appropriate upper limit on the equity pledge ratio.The company should use net shareholding to measure the shareholder's control over the company.The company should improve the disclosure of equity pledge information.The stakeholder's aware of risk warning should be strengthened.