Research On The Encroachment Of Interests By The Major Shareholders Of Listed Companies In Equity Pledge

For small and medium-sized listed companies,capital operation and access to funds are the main problems in their development and operation.Since 2014,the emergence of equity pledge makes more and more listed companies take it as a new way to solve their own capital gap.However,since 2018,the risk of equity pledge has gradually revealed.The reason for many companies to pledge equity is that their financial situation is not ideal.Under this factor,the controlling shareholders are likely to raise a lot of funds and occupy them through this financing behavior,which highlights the risk of interest encroachment.This paper uses case study method to analyze the pledge behavior of major shareholders of Sansheng shares.Sansheng is a leading enterprise in Chongqing admixture industry,which is representative in the industry;and the proportion of equity pledge is higher than other companies,which is representative.First of all,this paper summarizes the related concepts and theoretical basis of equity pledge combined with a large number of literature and the author’s learning,and makes a clear explanation and analysis of the research significance.Secondly,this paper analyzes the process of Sansheng’s equity pledge and the mechanism of interest encroachment based on the current situation of equity pledge market.Then,this paper analyzes the economic consequences of interest encroachment,and comprehensively analyzes the impact degree from the perspective of market,company,small and medium shareholders.Finally,this paper will draw the corresponding conclusions according to the content of the case analysis,and put forward targeted countermeasures and suggestions for listed companies,pledgees,minority shareholders and regulators,hoping to effectively prevent or reduce the occurrence of interest encroachment under equity pledge in the future.