Research On The Brand Building Of The Virtual Anchor Group "Rainbow Club

With the development of Chinese capital market,the equity structure of companies has gradually become centralized.Controlling shareholders appears,which provides prerequisites and conditions for equity pledge business.Equity pledge has entered Chinese capital market since 1995.As long as the stock price remains above a certain level during the pledge period,the pledged shareholder can obtain funds without losing control.So,equity pledge is used because of these advantages.However,once the stock price drops sharply to a certain extent and the pledgee cannot repay the loan,the pledgee can sell the stock to make up for the loss,and the corresponding control right of the pledged shareholder will also be lost,which is not good for the shareholders themselves and the listed company.If the overall pledge ratio of the market is high,the possibility of corresponding risks will be greater.When the equity pledge is carried out,the controlling shareholder may take different actions.They may strive to improve the company’s operation and guide the stable development of the company due to the corresponding stock price pressure.They could also encroach on the company’s interests and deteriorate the company’s operating performance.Based on the background,this paper analyzes Will Semiconductor CO.,Ltd.and intends to study whether its controlling shareholder’s equity pledge has an impact on the company’s performance through the following path:capital market information transmission,R&D investment,separation of control rights and cash flow rights,and financing constraints.Then,summarize the analysis results,draw conclusions and make recommendations.Through case analysis,the controlling shareholder’s equity pledge behavior is transmitted through the capital market,which affects the performance of the company’s stock price and the short-term performance of the company.In general,the impact is negative.Through the analysis of R&D investment,separation of two rights,financing constraints,it can be inferred that equity pledge has played a high incentive effect on the controlling shareholders of Will Semiconductor CO.,Ltd.and the motivation and effect of improving corporate performance is greater than that of profit encroachment.The overall performance of the enterprise maintains a relatively good level.Based on the case analysis,this paper puts forward the following inspirations and suggestions from the perspectives of individual pledged shareholders,listed companies,financial institutions and market supervision departments.For pledged shareholders,attention should be paid to controlling the pledge ratio when undertaking equity pledges.For listed companies,a clear and standardized governance structure should be established,and the pledge ratio of major shareholders should be limited to reduce the negative impact of equity pledge on the company.Financial institutions should strictly control the pledge business,and investigate the information such as the background,purpose and the capital status of the pledgor.The relevant authorities should attach great importance to the risk warning of equity pledge,and gradually improve the design of the pledge information disclosure system,especially the purpose of pledge.This can guide the pledgors to reduce the encroachment intention and improve the overall stability of the capital market.