Case Research On The High Proportion Of Equity Pledge Of The Controlling Shareholder Of Meisheng Culture

In recent years,more and more controlling shareholders of listed companies raise funds by means of equity pledge.As the pledgor in the equity pledge business,the controlling shareholders pledge most of their equity,which causes a lot of risks in the capital market and brings negative economic consequences to listed companies.Since 2013,the controlling shareholders of Meisheng Culture and their concerted actions have started frequent equity pledge,becoming the enterprise with the highest proportion of equity pledge of the controlling shareholders in the cultural media industry.In September 2021,the pledged equity was forced to be auctioned.This thesis takes Mason Culture as the research object,and analyzes its motivation,risks and economic consequences of equity pledge,in order to obtain enlightenment for listed companies and stakeholders.Theoretical analysis and case analysis will be combined in this thesis.The theory part introduces the related concepts and theoretical basis of equity pledge.In the part of case analysis,the shareholding pledge of the controlling shareholder of Mei Sheng Culture is firstly introduced,including the basic situation of the company,the shareholding structure,the business structure and the operating situation in recent years,and the specific process of the shareholding pledge of Mei Sheng Culture’s controlling shareholder,the characteristics of the shareholding pledge and the capital investment after the shareholding pledge financing are sorted out and summarized.Secondly,this thesis analyzes the motivation of the controlling shareholder’s equity pledge behavior of Mei Sheng Culture,and uses La Porta method and ZScore model to analyze the related risks caused by the controlling shareholder’s equity pledge behavior.Using event study method and Tobin’s Q value method to analyze the short-term and long-term effects of the equity pledge behavior of Mason Culture’s controlling shareholders on the value of listed companies from multiple perspectives.Through the analysis,it is found that:the high proportion of equity pledge leads to the controlling shareholders of Mei Sheng Culture have a strong motive to occupy the company’s interests;The high proportion of equity pledge intensifies the moral hazard,control transfer risk and operational risk of listed companies;The high proportion of equity pledge leads to the negative reaction of the market and damages the value of the company,which brings negative economic consequences to the company.Finally,according to the analysis conclusion,the thesis summarizes the enlightenment of the case,including: the internal control system should be improved,the proportion of the controlling shareholder’s equity pledge should be limited,the use of the controlling shareholder’s funds and the financial situation during the pledge period should be tracked;The pledgee shall strengthen the inspection and supervision of the controlling shareholder and the listed company;Minority shareholders should enhance the awareness of investment risk;The government should improve the relevant system of information disclosure and increase the punishment for violations of equity pledge.