Research On The Risk Of High Proportion Of Equity Pledges By Controlling Shareholders Of Zangge Mining

The equity pledge financing method is to obtain a loan by pledging equity as the subject matter to a financial institution,and its main advantages are easy valuation,simple procedures,low thresholds,etc.and are favored by many enterprises and shareholders.In recent years,with the gradual increase in the scale and frequency of equity pledges,the liquidation of controlling shareholders has also occurred frequently,and the risks caused by them cannot be ignored,and the controlling shareholders have a significant impact on the business activities of enterprises,so how to identify,analyze and prevent the risks generated by equity pledges is a difficult point and focus that needs to be solved urgently.In view of the greater impact of the equity pledge of the controlling shareholder on the company and the relevant stakeholders,the real motive hidden by the equity pledge of the controlling shareholder,the flow of financing funds and the various risks caused by the enterprise will be the focus of this paper.Based on the content of equity pledge risk,this paper analyzes the internal mechanism of equity pledge risk in depth.Taking the high frequency and high proportion of equity pledge of the controlling shareholder as a research case,the main research content is to analyze the motives,risk generation and risk genesis of the equity pledge of Zangge Mining from the characteristics of the equity pledge of Zangge Mining,and finally put forward relevant suggestions through the specific circumstances.For the analysis of equity pledge risk,the main content is the generation of financial risks,and the impact path is the inducement of profit drive and risk avoidance after the equity pledge of the controlling shareholder,and the use of its functions to make self-interested financial decisions.The controlling shareholders of Zangge Mining raised about 7.7 billion yuan through equity pledges,mainly investment in Julong Copper,and in order to alleviate the debt repayment pressure caused by equity pledges and further stabilize the stock price,the controlling shareholders adopted a series of financial actions such as non-operational occupation of corporate funds and whitewashing statements.By selecting the main financial data and indicators in a targeted manner to analyze the impact of the above behaviors on the financial situation,and conducting risk assessment through the Zscore model,the fact that the financial risk of the controlling shareholder increases after the equity pledge is found.Secondly,other risks after equity pledge are analyzed,such as: interest encroachment risk,market risk,and control transfer risk.The main form of interest encroachment is non-operational occupation of the company’s funds,affecting the normal operation of the company;market risk is a negative reaction to the stock price derived from calculating the excess rate of return by the event research method;the risk of transfer of control is found to be unable to repay the pledge loan through the stock price trend chart and the analysis of the pledgee’s financial situation,and it is frozen in its entirety.This paper proposes corresponding countermeasures for the occurrence of equity pledge risks:(1)select appropriate market value management behaviors(2)rationally use equity pledge financing funds,(3)regulate the disclosure of equity pledges,(4)establish dynamic credit assessment of pledgees,(5)strengthen the governance and supervision of equity pledges.