Study On The Risk Of Controlling Shareholder’s Pledge In *ST Kangde

The controlling shareholder’s pledge of stock rights refers to the behavior of a listed company’s controlling shareholder taking the shares it owns as the subject matter so that it can raise funds from financial institutions.With the development of China’s economy,the capital market has also developed to a certain extent,and various related policies and regulations have been continuously introduced and improved.Pledge of stock rights are becoming more and more popular because of the advantages of simple review procedures,convenient operations and fast circulation.It is favored by both investors and shareholders of the company.Since the pledge of stock rights financing has become more and more widely used and widely accepted,it does have some merits.It helps listed companies raise sufficient working capital so that companies can seize more investment opportunities.However,the controlling shareholder’s equity pledge is also risky in the financing process.During the financing process,many listed companies’ controlling shareholder’s equity pledges are frequent,and the proportion of equity pledge is high,sometimes even close to100%,the potential hidden dangers of equity pledge are gradually exposed.,it even has becomed a major risk factor hindering the development of the enterprise or even the failure of the enterprise.There is also the risk of liquidation caused by the decline in stock prices.In 2018,due to the deterioration of the macroeconomic environment and the decline in stock indexes,the stock prices of a large number of listed companies fell below the cordon line and the close line set when the equity pledged in a short period of time.These risks transmitted a very unfavorable signal to the control of listed companies’ equity,which is not conducive to the stability of the company’s equity structure.Therefore,we need to understand the meaning of equity pledges,the motivation for equity pledges,and the effects of equity pledges.By studying the adverse risk of equity pledges,it is beneficial for listed companies to make better use of equity pledges for financing.And help us take corresponding precautionary measures.This article analyzes the equity pledge of the controlling shareholder since the listing of * ST Kangde’s controlling shareholder Kangde Group since its listing,combined with company announcements and periodic reports on the controlling shareholder’s equity pledge,and finds that Kangde Group has passed the The pledge obtained a total of 8.925 billion yuan,the carbon fiber project cost 1.3 billion yuan,and most of the rest went to the accounts of Kangde Group’s major shareholders.The motives of Kangde Group’s equity pledge include financing demand motive,motive to maintain a controlling position and interest encroachment.The equity pledge risk has the risk of separation of the two rights;the risk of management instability and the transfer of control power;the risk of market fluctuations and the risk of infringement of stakeholders.Investors had no obvious reaction to the equity pledge of Kangde Group.Using the cumulative excess rate of return calculated by the event research method,it was found that the cumulative excess rate of return in the window period showed a downward trend,proving that the market response of investors to the equity pledge of Kangde Group was negative.Finally,it puts forward proposals to prevent the risk of controlling shareholder’s equity pledge from three aspects: supervision department,listed company and pledgee.