Risk And Performance Analysis Of Equity Pledge By Controlling Shareholder Of Enterprises

After my country issued the "Administrative Measures for the Securities Company’s Stock Pure Loan Loan" in 2000,the equity pledge business has developed rapidly,and the number of companies that have obtained financing by adopting equity pledge methods have gradually increased.Compared with the traditional financing method,equity pledge is less procedures,fast speed,and few restrictions,but in recent years,more and more listed companies have adopted high-proportion and high-frequency equity pledge financing.The adverse effects of performance decline.In this context,this paper selects Zangge Mining Co.,Ltd.as the research object.The company is at the forefront of the chemical industry,and its shareholders have frequently pledged equity since 2016,with the pledge ratio reaching exceeding95%.In addition,Zange Mining occurred,which occurred in the situation of equity pledge contract,pledged stocks were auctioned,financial fraud and delisting warnings,etc.Choosing the company as a research case was representative and research value.This article takes the theory of entrusted agency theory,information asymmetric theory,and the theory of private interest in control as the theoretical basis.Overview of the equity pledge of the joint-stock company analyzes the risks that Tibet Mining’s equity pledge will bring to enterprises before and after the exclusion of equity pledge,and analyzes the impact of equity pledge on corporate performance through changes in financial indicators and EVA models through financial indicators,and briefly analyzed the correlation between risk and performance.Through research,the risks brought by equity pledge to Tibigan Mining are mainly the following: first,equity pledge will increase the risk of corporate control transfer;second,equity pledge will reduce the ability of enterprises to bear risk.The impact of equity pledge on corporate performance is mainly divided into the following aspects: First,it will reduce the short-term debt capacity of the enterprise,but the company’s long-term debt repayment capacity,profitability,operating capacity and development capacity will be improved to varying degrees;The second is that through the EVA model research,it is found that after the holding shareholders’ equity pledge compared with the pledge of equity,the economic added value of the enterprise is increased,which shows that equity pledge can improve the performance of the enterprise to a certain extent.In response to the above risks,this article puts forward some improvement suggestions from the company level and the government and regulatory authorities.The first is the enterprise level.Enterprises should strengthen the internal governance and supervision system and give play to the role of internal supervision of the enterprise;they should also set the proportion of equity pledge proportion suitable for their own enterprises.When the equity of shareholders’ pledge exceeds the proportion,its voting rights should be appropriately limited.Secondly,at the level of government and regulatory authorities,the government and regulatory authorities shall optimize policies and regulations related to equity pledge;in addition to improving the equity pledge information disclosure system,strengthening disclosure management of equity pledge,and increasing the details of disclosure information.