Research On The Motivation And Economic Consequences Of Controlling Stockholders’ High-proportioned Pledge

Equity pledge is a more popular way among the financing methods of listed companies,mainly because the equity pledge takes less time with looser supervision,convenience and speed.However,the proportion of equity pledge of controlling shareholders is too high,which will inevitably bring about a series of problems.Pharmaceutical manufacturing industry belongs to the high-tech industry,with high demand for capital,the proportion of equity pledge of the controlling shareholders of each enterprise is large and frequent,which will have an impact on enterprises,controlling shareholders and stakeholders,and cause a series of economic consequences.The research on equity pledge in academic circles is also mainly based on the risk and economic consequences of equity pledge.In this paper,the in-depth study of a high proportion of equity pledge by a specific case company can help standardize the equity pledge behavior of the controlling shareholders of listed companies,and provide a stronger guarantee for the stable operation and development of listed companies.It has referential value to the whole industry,and also has both theoretical and practical significance.This paper selects Shanghai Laishi as an example,based on Corporate Control Theory,principal-agent asymmetric information theory,and combs the process of foreign pledge equity of its controlling shareholders on the basis of studying a large number of literatures.Firstly,it analyzes the motivation of high proportion equity pledge of Shanghai Laishi controlling shareholders,there are four aspects: broadening the financing channel,providing guarantee for third party financing,the need of M & A and meeting its own capital needs,and secondly,exploring the economic consequences of the high proportion of equity pledge of controlling shareholders,including the deterioration of the company’s operating conditions.In the short term,late default caused the passive reduction of controlling shareholders,increase the transferring risk,the negative impact on the company,infringement of the interests of stakeholders,finally,put forward suggestion according to its economic consequences,including optimizing the management decision-making system,establishing the risk management system,improving the transparency of information disclosure,standardizing the investment behavior of controlling shareholders...