Study On Financial Risk Of Equity Pledge Of Controlling Shareholders Of Tom

Equity pledge is one of the most popular financing means because of its simple operation,fast realization and low cost.However,due to imperfect system,weak supervision and continuous stock market shocks,position explosion and closing occur frequently.Therefore,it is particularly important to study the financial risk from the perspective of financial behavior.Taking Zhejiang Jinke Culture Industry Co.,Ltd.as the study object,this paper finds that the losing control right hazard and self leverage risk faced by the stockholders after frequent equity pledge will result in the company’s many risks,especially the financial one.Then,because of the control advantage,they will lead irrational financial behavior to stabilize the stock price or empty the company for personal gain.This paper pay more attention to the above actions after the stockholders’ equity pledge,such as radical foreign investment,related party transactions,reduction of shares,occupation of funds by related parties,etc.,then analyzes and evaluates financial risk through three ways.Firstly,it is based on single financial index.Secondly,relying on the model to estimate the overall financial risk.The last one is a series of steps,that is to choose different indexes,analyse the impact of various elements affecting financial risk,and evaluate the financial risk of Jinke Culture more comprehensively and systematically.After research and demonstration,establishing a perfect financial risk early warning mechanism of equity pledge and increasing the regulatory authorities’ supervision can be used to reduce the financial risk caused by Jinke Culture equity pledge.