Research On The Risks Of The Pledge Of The Controlling Shareholders Of Huayi Brothers Media Co.,Ltd.

After the emergence of the corporate system,the equity pledge gradually emerged to meet the financing needs of enterprises with the continuous development of the commodity economy and the credit economy.Equity pledge can be said to be a brand-new financing method with strong advantages.Due to lack of funds,controlling shareholders can use their own equity to pledge to third-party financial institutions to raise funds.The cost of financing is low,easy to use,and it does not transfer control.In recent years,facing the downward trend of the global economy,many companies have used equity pledges to solve financial problems,and the use of equity pledges has become more and more widespread.However,companies must not only see the benefits of equity pledges,but also pay attention to the risks behind them.Improper use may cause dramatic fluctuations in stock prices and even impact the capital market,leading to instability of the company’s operations.Therefore,the potential risks behind it need to be paid attention to.This article uses China Huayi Brothers Media Co.,Ltd.(hereinafter referred to as "Huayi Brothers")as a research case,researching the potential risks behind equity pledges in its controlling shareholders,and proposes some targeted prevention and measures recommendations based on their risk assessment results.This paper first introduces a basic introduction to the equity structure of Huayi Brothers and shareholding status of controlling shareholders.The reasons of equity pledge are analyzed,and thoroughly combs its controlling shareholder from 2011 to 2019 equity pledge a whole process,and finds the risk points behind their equity pledge;the related risks involved in Huayi Brothers Holdings Shareholders are evaluated and outcome,and it is important to determine which important risk factors may result in its crisis.The risk assessment method of this paper uses the event research method,the Z score model,and the important financial indicators analysis method,and the specific detailed assessment analysis of its control risks,moral risks,market risks and financial risks;finally based on analytical evaluation results it is targeted to propose the risk prevention recommendations of Huayi Brothers Holdings Shareholders’ Equity Pledge,which is actively improving corporate governance and management level,and provides reference.