Research On The Influence Of Equity Pledge By Major Shareholders Of Pegasus International On Corporate Value

In recent years,with the development of capital market,pledge of stock rights has been widely used by companies with its advantages of convenient financing and low financing cost.pledge of stock rights has developed rapidly.Due to the concentration of enterprise equity in China,pledge of stock rights of major shareholders is more common.The high proportion of pledge of stock rights of major shareholders has not only solved the financing needs of enterprises,but also derived some problems.Equity pledge reduces the cost of seeking private interests of major shareholders,increases the motivation of major shareholders to hollow out,and ultimately leads to the decline of corporate value.And because of information asymmetry,it is often difficult for investors to identify the real purpose of equity pledge of major shareholders and make reasonable investment decisions.Therefore,it is necessary to further study the influence of equity pledge on minority shareholders,major shareholders and investors,as well as how the ultimate equity pledge changes the corporate value.This paper takes Shenzhen Feima International Supply Chain Co.,Ltd as the research object.Pegasus International belongs to the logistics Supply Chain service industry.After the operation strategy of Pegasus International changed into the dual-business operation strategy in 2016,the major shareholders frequently carried out high-proportion equity pledge financing.Moreover,the major shareholders’ benefit encroachment behavior is obvious,so this paper chooses Pegasus International as the research object.Pegasus international equity structure and equity pledge situation first,then discussed the motivation behind the pegasus international equity pledge,and pegasus international equity pledge affect the value of the company,through which path finally through to the pegasus international big shareholder’s equity market value,financial performance and market value changes for a long time,Comprehensively evaluate the impact of pegasus International equity pledge on the corporate value of Pegasus International.Finally,relevant suggestions are given based on the specific study and analysis of the case,I hope to provide some reference for other listed companies with equity pledge or business similar to Pegasus international.Through case study and analysis,this paper draws the following conclusions:First,the purpose of major shareholders’ equity pledge is usually to meet financing needs,maintain their controlling position and occupy interests.Second,the separation of the two rights leads to the use of a series of means by major shareholders to seek personal gains,and ultimately reduce the value of the company.Third,market value management leads to a decline in the quality of corporate information disclosure,a large degree of stock price volatility,and a long-term reduction in corporate value.Fourth,the long-term equity pledge behavior reduces the financial value and market value of the company.According to the specific situation of Pegasus international equity pledge,This paper puts forward some suggestions.One is to optimize the ownership structure of the company.Second,improve the corporate governance structure.Third,improve the company’s information disclosure mechanism.Fourth,restrictions on equity pledge.