Research On Rescue Effect Of Equity Pledge Of Changxin Technology

Private enterprises play an important role in the country’s economic development.However,the development of private enterprises is faced with a difficult situation,especially the problem of financing constraints is more prominent.In recent years,equity pledge has become a major financing means for major shareholders of listed companies.However,excessive reliance on equity pledge will lead to market risks caused by stock price fluctuations and liquidation risks,and even lead to the risk of control transfer if there is no additional guarantee,which has a great impact on the healthy development of the capital market.In response to the above problems,the Chinese government introduced the concept of "rescue",taking local state-owned assets as the main body of rescue,which opened up new space for the restructuring of private enterprises and provided them with new financing channels,so as to reduce their short-term liquidity risks.The fundamental purpose of equity pledge rescue of private enterprises is to help enterprises in the current liquidity crisis,as soon as possible to restore and improve the profitability of the company,improve the industry development ability.Therefore,with the serious occurrence of equity pledge thunder in private enterprises,the Chinese government has formulated rescue policies for private enterprises,and the companies are also actively seeking rescue plans and paths,and the rescue effect has attracted more and more attention from the market.In this paper,equity pledge rescue is chosen as the research topic,and Changxin Technology,a private enterprise bailed out for the first time by Anhui state capital,is selected as the case study object.The process and plan of its equity pledge are sorted out,the successful rescue experience is summarized,and ideas and references are provided for other companies facing the issue of equity pledge rescue.First of all,the ownership structure of Changxin Technology and shareholders’ shareholding situation,the process of equity pledge and the risks faced were sorted out.Secondly,this paper introduces the process of using equity bailout mode of Changxin Technology,and focuses on analyzing the path of equity pledge bailout of Changxin Technology by using relevant theories.Finally,using event study method,entropy weight TOPSIS method,Tobin’s Q value and grey relational degree to analyze the market effect,financial risk and company value before and after the bailout,thus reflecting the economic effect of the bailout.Based on the above research,this paper draws the conclusion: The equity-based rescue mode can play a positive role in the overall economic effect of Changxin Technology by reducing the proportion of equity pledge,improving the efficiency of corporate governance,improving the debt financing ability,increasing innovation and strengthening strategic synergy,which is specifically manifested in enhancing the confidence of market investors and avoiding the risk of liquidation after the rescue.The company’s financial risk is reduced,and the company’s financial performance is improved;Seize the development opportunity,the company value rises,as our attention to the development of private economy continues to improve,there will be more enterprises choose to be bailed out.Therefore,this paper summarizes the successful cases of the rescue of Changxin Technology,hoping to provide some references for similar enterprises.