A Study On The Motivation Of Shareholders’ Equity Pledge Of Qianjing Garden And Its Impact On The Company

With the gradual improvement of the development of market economy,financing methods are constantly innovating.As a new financing method,equity pledge can obtain a large amount of funds in a short time due to the relatively simple procedure,which gradually becomes an important financing means for financiers.However,as the market mechanism is not mature enough,relevant laws and regulations are not perfect enough,and the equity pledge in the implementation is easily affected by various factors,leading to the frequent "thunder" of equity pledge of controlling shareholders,which has aroused extensive attention of the academic community,and how to solve the above problems has become a hot topic of academic research.In this paper,dry landscape gardens are selected as the case analysis object,and the process of equity pledge is analyzed and studied.In this paper,case analysis method,event study method and comparative analysis method are adopted,based on the principal-agent theory,information asymmetry theory,information transfer theory,cash flow right and control theory,etc.,to comprehensively analyze the motivation of Qianjing Garden shareholders’ equity pledge and its impact on the company.First of all,the literature on equity pledge at home and abroad is sorted out and sorted out,and the concepts of controlling shareholders,equity pledge and equity pledge risk are defined to lay a theoretical foundation for the following research.Secondly,it introduces the general situation of Qianjing Garden’s equity and the current situation of controlling shareholder’s equity pledge.Thirdly,in-depth analysis of Qianjing Garden controlling shareholder equity pledge motivation and the impact on the company.Finally,in view of the influence of the controlling shareholder’s equity pledge,this paper puts forward some suggestions for Qianjing Garden to deal with the influence of the controlling shareholder’s equity pledge on the company.This paper finds that the equity pledge of Qianjing Garden’s controlling shareholder has an impact on the company’s non-financial performance,financial performance and corporate governance.First,the long-term and frequent pledge of high proportion of equity leads to the continuous decline of stock prices,which brings losses to investors and companies.Second,due to the decline of the company’s stock price,there is the risk of transfer of control rights,and the change of the company’s management during the pledge of the controlling shareholder’s equity affects the company’s financial performance.The sustainable development ability of dry landscape Garden company is damaged.Third,the high proportion of equity pledge leads to a higher degree of separation between the right of control and the right of cash flow,which leads to the strategic choice error of the controlling shareholder’s business decision in the later period,and the occupation of the company’s non-working capital.On the basis of the research conclusions,the corresponding countermeasures and suggestions are put forward.Based on the proportion of equity pledge,the quality of financial index disclosure and the performance of the company’s stock market,the judgment basis of how to identify the risk of corporate equity pledge is given.It is not only conducive to solving the business difficulties caused by equity pledge of Qianjing Garden,but also can provide valuable practical experience for other listed companies with similar equity pledge risks.