A Study On The Impact Of Equity Pledge Of The Controlling Shareholders Of Listed Companies

Since 2020,with the outbreak of the new crown epidemic,my country’s real economy has begun to fall into a downturn,and the operating pressure of small and medium-sized enterprises has intensified.To maintain the normal operation and development of the enterprise,at this time,if the enterprise’s own capital cannot meet the demand,it needs to borrow funds from the outside.As a tool for major shareholders to raise funds,equity pledge not only provides them with a new financing method,broadens financing channels,but also alleviates the dilemma of the company’s capital chain being broken.In addition,because the equity pledge is only to pledge the equity in the hands of the major shareholders,it only loses the right to cash flow,and the control right is not weakened.Compared with traditional equity financing,it has an incomparable advantage.Precisely because of the convenience of pledge financing tools and the characteristics of maintaining shareholder control,it is highly sought after by listed companies,which also makes the proportion of major shareholders pledge more and more in some companies,which greatly increases the risk of the company’s stock liquidation,and then It will have an adverse impact on listed companies,and in severe cases,the operation of the company will be stagnant.Therefore,it is necessary to analyze the impact of the controlling shareholder’s equity pledge on the company.This thesis takes Sansheng shares as a case study object,and studies the impact of its controlling shareholder’s equity pledge on the company.Firstly,the literature about equity pledge at home and abroad is reviewed from the three aspects of motivation,risk and company influence;secondly,the related concepts,related theories and internal and external influence mechanisms of equity pledge are expounded.Thirdly,the company will be briefly introduced from the three perspectives of Sansheng’s shareholding structure,pledge process and characteristics.Finally,a comprehensive analysis is made from the three aspects of the motivation of equity pledge and the internal and external impact of equity pledge on the company.Through the above case analysis,this thesis draws the following conclusions: First,the impact of different equity pledge ratios on investors is different.If the controlling shareholders of the company control their cumulative equity pledge ratio within a reasonable range,then investors will recognize their equity pledge behavior,which will bring a positive market effect and the company’s stock price will rise.Second,with the continuous increase of the accumulative equity pledge ratio of controlling shareholders,their equity pledge behavior at this time will have a negative impact on investors,which is not conducive to the normal operation and development of the company,and damages the company’s value.Third,the public information of most of the equity pledge announcements of Sansheng Co.,Ltd.is brief,the use of the funds obtained by the shareholders’ pledge is not detailed,and the quality of the information disclosed in the announcements is low.Based on the above analysis and conclusions,this thesis puts forward relevant suggestions from three aspects: government level,company level and company shareholder level,mainly including: improving the supervision and governance structure,flexibly using Internet channels,bailout fund support,focusing on company information disclosure,and improving the company’s internal Control structure,large shareholders rationally pledge equity,and small and medium shareholders pay attention to their own interests.To deal with the impact of the controlling shareholder’s equity pledge from multiple dimensions.