A Case Study Of Controlling Shareholders’ Equity Pledge Of Huayi Brothers

In recent years,due to the macro impact of the economic downturn and the tightening of financial deleveraging financing policies,traditional financing channels have been unable to meet the financing needs of listed companies.How to quickly obtain funds for company operations at a lower cost has become a problem.Difficulties facing the majority of listed companies.Equity pledge financing has gradually become one of the financing methods favored by listed companies due to its simple approval procedures,low financing costs and no loss of control.According to statistics,as of October 13,2020,there are 2,792 listed companies that have pledged shares in A-share market,accounting for 69.03% of the total number of A-share companies.The cumulative number of pledges by the controlling shareholders of listed companies accounted for more than 50% of the shareholding ratio.There are 913 of them.Among them,122 have 100%.Although equity pledge provides listed companies with a convenient and fast new financing channel,at the same time,listed companies have exposed many problems in the process of equity pledge,which brings huge risks to the company.Since most of the listed companies that carry out equity pledges are relatively concentrated,the entrusted agency problem caused by equity pledges has become more prominent.The separation of control rights and cash flow rights is very likely to induce controlling shareholders to use equity pledges to hollow out listed companies for their own purposes.At this time,the equity pledge behavior of the controlling shareholder will inevitably harm the company’s interests.This article takes Huayi Brothers Media Co.,Ltd.as the research object,based on the current research status at home and abroad and the related theories of equity pledge,combs the equity structure of Huayi Brothers and the scale and number of equity pledges,and analyzes the equity pledge of Huayi Brothers’ controlling shareholder Motivation,based on the economic activities after Huayi Brothers equity pledge,reasonably guess its possible pledge capital investment,and use the data to analyze in detail the degree of separation of the two rights of the company by the equity pledge of Huayi Brothers’ controlling shareholder,the company’s value and value creativity,and company performance The impact.Research has concluded that the controlling shareholder’s equity pledge will cause the company’s stock price to fall and weaken investor confidence;increase the degree of separation of control and cash flow rights,and facilitate the controlling shareholder’s infringement of company resources for personal gain;a high proportion of equity pledge will affect the company’s value,value creativity and company performance Both have a negative impact.Finally,the equity pledge financing of the controlling shareholders of listed companies has drawn lessons that can be used for reference,and put forward reasonable suggestions for the company and external supervision,hoping to help listed companies avoid some risks brought by equity pledges,and promote the improvement of my country’s equity pledge related laws and regulations,To promote faster and better development of our country’s capital market.