Research On The Motivation And The Impact Of Corporate Value Of The Equity Pledge Of The Controlling Shareholders Of ZANGGE MINING

With the development of China's economy and capital market,as a new financing means,equity pledge has become a preferred financing method for enterprises with its advantages of low financing cost,short financing time and high liquidity.However,due to the characteristics of equity pledge,it has brought many hidden dangers to enterprises while developing at a high speed.For example,the high pledge rate makes the stock price of listed companies becoming more volatile.Once the stock price falls below the liquidation line,it will greatly increase the risk of compulsory liquidation and lead to the transfer of control rights of major shareholders.Most of China's listed companies are private enterprises,the internal ownership structure of the company is highly centralized,and if controlling shareholders want to finish equity pledge,it must be decided by the general meeting of shareholders.In addition,the controlling shareholder representing the image of the listed company,the equity pledge will lead to a great negative impact on the listed company to a certain extent.Therefore,the study of the impact of equity pledge on corporate value is not only conducive to corporate governance,but also promote the rapid development of capital market.Firstly,this thesis reviews the relevant literature of domestic and foreign scholars on the equity pledge,corporate value and the impact of equity pledge on corporate value.Secondly,it analyzes the motivation of equity pledge of ZANGGE MINING from external and internal factors.Based on the private interest theory of control,principal-agent theory,information asymmetry theory and signal transmission theory,this thesis analyzes the mechanism and path of equity pledge affecting corporate value.On the basis of theoretical analysis,combined with the case of ZANGGE MINING,this thesis analyzes the impact of equity pledge on the value of listed companies through market value management path,two rights separation path and innovation activity path.Finally,this t makes a concrete analysis of the change of corporate value by calculating Tobin's Q Ratio.The findings of this thesis are as follows:(1)The external reasons for the equity pledge of ZANGGE MINING are mainly as follows: the policies on bank credit and stock transfer are becoming more and more strict,and the overall market environment of potassium chloride is unknown.The main internal reasons are: the controlling shareholders of listed companies are suspected of meeting their own financing needs and transferring interests through equity pledge.(2)The equity pledge of shareholder of ZANGGE MINING leads to the increase of the separation of the two rights,aggravates the agency problem between major shareholders and minority shareholders,causing major shareholders to infringe on the interests of minority shareholders,then leads to the decline of the company's value.(3)The equity pledge of shareholder of ZANGGE MINING leads to the decline of the share price of listed companies,which has a negative impact on the value of the company.(4)The equity pledge of shareholder of ZANGGE MINING will reduce the innovation activities of enterprises,lead to the lack of competitiveness of enterprises,and it is difficult to improve the value of the company.According to the research conclusion,this thesis puts forward relevant suggestions,hoping to avoid the bad motivation of equity pledge of major shareholders of listed companies and prevent the negative impact of equity pledge on corporate value,so as to promote the further development of capital market.