Research On The Influence Of Controlling Shareholde’s Equity Pledge On Medium And Small Investors

Equity pledge can alleviate the company’s financing problems by revitalizing equity assets,so it is favored by listed companies.Especially for controlling shareholders with a large number of shares,they are more inclined to this financing method.However,since equity pledge is simultaneously affected by multiple factors such as regulatory policies,market fluctuations,and company development,the huge scale of equity pledge faces greater hidden risks than general pledge financing.Its risks are concentrated in the transfer of control rights,leveraged management risks and liquidity risks,which not only adversely affect the pledged companies and pledge institutions,but also easily infringe on the interests of the majority of small and medium investors.The equity pledge of controlling shareholders usually aggravates the changes in the stock market value of small and medium investors,and at the same time amplifies their performance risk-taking,and even becomes a means for actual controllers to seek personal benefits.Therefore,studying the impact mechanism of controlling shareholder’s equity pledge on small and medium investors will help to protect the legitimate interests of small and medium investors,and at the same time improve the relevant policies and systems of equity pledge business.This paper mainly uses the case analysis method,taking the R company with three stages of equity pledge by the controlling shareholder as the research object,and deeply analyzes the history of the company’s controlling shareholder equity pledge and its impact mechanism on small and medium investors.Inspiration from regulators,listed companies and small and medium investors.The first is to introduce the background and research significance of equity pledge,put forward the existing problems of equity pledge and explain the research ideas.The second part is an overview of relevant concepts and basic theories,focusing on the core theories involved in the impact of controlling shareholder equity pledge on small and medium investors,laying the foundation for the following case analysis.The third is to introduce the case company,mainly introducing the general situation of R company and the history of equity pledge of the controlling shareholder in each stage,and at the same time,from the perspective of financing channels,company development and the capital demand of the controlling shareholder,and the flow of the pledged capital,the motivation of the company’s controlling shareholder equity pledge.Then,from the three aspects of direct impact,indirect impact and impact reasons,the specific role path of equity pledge by the controlling shareholder of the case company to small and medium investors is analyzed.Among them,the direct impact is analyzed from the company’s stock price and dividend distribution policy choices,and the risks associated with the limited trading rights of small and medium investors are explained;in addition,the indirect impact focuses on the major behaviors of the controlling shareholders that affect the company’s value in the state of equity pledge.,financial status and changes in company value;on the basis of this impact analysis,the specific reasons for the impact of the controlling shareholder’s equity pledge on the small and medium investors of R company are further clarified.Finally,the main conclusions of the above case study are drawn: Equity pledge is a neutral financing method,which does not necessarily aggravate the second type of agency conflict;but after a high proportion of equity pledge,the controlling shareholder has a strong incentive to intervene in the stock price and is easy to make sacrifices The short-sighted behavior of the company’s long-term interests will increase the instability of the company’s development,which increases the risk of small and medium investors’ shareholding,and also hinders the establishment of long-term value investment concepts.Finally,based on the previous case analysis,we get inspiration: the regulatory authorities should improve the third-party review of the qualifications of equity pledge pledgors,link the standard division of equity pledge rate with the company’s development status,and focus on strengthening the pre-supervision of companies with a high proportion of equity pledges by controlling shareholders.;Listed companies should take the initiative to prevent and resolve the risk of equity pledge,and strengthen the company’s internal governance through multiple channels;small and medium investors should also treat equity pledge rationally,focusing on improving the ability to identify the motives of controlling shareholders’ equity pledge.