Analysis Of The Impact Of Equity Pledge On The Value Of Small And Medium-Sized Enterprises

Nowadays,The development of China's capital market is perfecting,and the regulatory policy is continuously strengthened.However,the financing problems of small,medium and micro enterprises still plague the development of the capital market,and the problems of difficult financing and expensive financing have not been solved well.As a consequence,equity pledge came into being with a purpose of alleviating the funding problems of enterprises.Its simple approval process,low cost and fast speed were quickly favored by many enterprises.As the listing of small and medium-sized enterprises,the pledge of equity is extremely popular.Equity pledge,as a new type of financing method,is no different from sending charcoal to enterprises which is facing financial difficulties,revitalizing the stock of funds and expanding financing channels.It helps companies pledge equity to financial institutions such as banks,and uses equity as pledge to obtain funds needed by enterprises.Equity pledges provide enterprises with financing facilities,however,at the same time,Large shareholders encroach on the interests of the company and small and medium shareholders through hollowing out and other behaviors,thus affecting the value of the enterprise.Therefore,this paper conducts a study on the impact of small and medium-sized board enterprises' equity pledge on the value of the company,which has strong practical significance.This article is targeted at Hengkang Medical Group,a small and medium-sized enterprise,as the research object,and it will discuss how the equity pledge affects its company value.Firstly,the relevant literature is sorted out,then the information asymmetry,the separation of two rights and the private theory of control rights are analyzed,and the relevant definitions are explained.Then,through case analysis,the equity pledge leads to poor short-term market effect,the decline of Tobin Q value and market account ratio,the overall decline of financial situation and the continuous increase of enterprise scale,and equity pledge is found The impact of pledge on corporate value is both positive and negative,but on the whole,it has a negative impact on corporate value.Moreover,due to the high prop-ortion of equity pledge of small and medium-sized enterprises at present In order to find a response,This article further obtains the comprehensive score of the company value through factor analysis,Regression analysis of equity pledge ratio and company value,It is concluded that within the scope of the company's equity pledge ratio,the equity pledge ratio has a negative correlation with the company value.Therefore,in order to avoid the adverse impact of equity pledge on the company value,this paper suggests that Hengkang medical group and other small and medium-sized enterprises should take the following measures to improve the financing system of small and medium-sized enterprises,improve the transparency of equity pledge information,strengthen the external supervision of the company and improve the internal governance structure of the company.Enterprises should fully realize the two sides of equity pledge and the problems of their own operation,so as to play a positive role in the company and reduce the negative impact.