Research On The Negative Effects And Countermeasures Of Controlling Shareholders’ Equity Pledge From The Perspective Of Tunneling

Financing difficulties have always been a major problem restricting the development of enterprises,especially private enterprises.The equity pledge loan has become one of the main means for listed companies,especially private enterprises,to solve the financing problem in recent years by virtue of its simple handling process,fast capital arrival and no dilution of control rights.Although equity pledge meets the financing needs of companies and shareholders,it also creates new profit growth points for financial institutions,but a high proportion of equity pledge also has high risks.When the controlling shareholder pledges the equity for the purpose of ’ tunneling ’,the company and other stakeholders will suffer large economic losses,which will have an unutilized impact on China ’s real economy.Taking Guizhou Bailing Company as a case,this paper studies and analyzes the negative effects of the equity pledge behavior of the controlling shareholders of the company from the perspective of tunneling motivation,and puts forward corresponding countermeasures.Specifically,the paper first analyzes the negative effects of the controlling shareholder ’s equity pledge behavior for the purpose of ’ tunneling ’ from the four aspects of the company ’s production and operation,financial status,company value and other stakeholders.The results show that,first of all,the controlling shareholder ’s equity pledge behavior will have a negative impact on the company ’s production and operation.These negative effects include conveying benefits through related party transactions,affecting the company ’s investment decisions,resulting in abnormal cash dividend decisions and reducing the quality of the company ’s information disclosure.Secondly,the controlling shareholder ’s equity pledge behavior will indirectly have a negative impact on the company ’s financial status and company value.Finally,the controlling shareholder ’s equity pledge behavior will also damage the interests of other stakeholders.Subsequently,the paper analyzes the reasons for the negative effects of the controlling shareholder ’s equity pledge behavior,and proposes corresponding countermeasures.The main reasons include unreasonable ownership structure,imperfect information disclosure system related to equity pledge,low cost of violation of relevant responsible persons,lax management of equity pledge business by pledgee,and failure of external regulatory authorities to play a regulatory role.The countermeasures include limiting the voting rights of controlling shareholders after equity pledge,improving the information disclosure system related to equity pledge,increasing the punishment of relevant responsible persons,strengthening the management of equity pledge business and strengthening the supervision of external regulatory authorities.