Research On The Motivation And Economic Consequences Of Equity Pledge Of Controlling Shareholders Of BLEST

As a fast and convenient financing method,equity pledge has gradually been favored by the major shareholders of listed companies.Equity pledge financing can supplement the company’s liquidity and accelerate the liquidity of funds to a certain extent,but there are also certain risks.Major shareholders may pledge their shares based on the need for financial integration,hollowing out listed companies,risk transfer and other motives.In order to prevent the risk of falling stock prices and the risk of transfer of control,and to maintain the value of stock prices and collateral,the controlling shareholder may have real earnings management behavior to whitewash the statement.At present,there is no unified conclusion on the motivation,economic consequences and risk research of equity pledge,which is worth discussing.Based on theories such as information asymmetry,this paper analyzes the motives of the controlling shareholders of BLEST,the economic consequences of equity pledge,and the surplus management behavior after equity pledge,and finally draws some conclusions and enlightenments.This paper finds that the controlling shareholder of BLEST has carried out a high proportion of equity pledge since 2016 due to the needs of financial integration,and through the analysis of the company’s operation and financial situation in recent years,it is found that the equity pledge of the controlling shareholder of BLEST can broaden the short-term financing channels of the enterprise,and will not have a negative impact on the company’s R&D investment,and will not have a negative impact on the company’s operating conditions in the short term,but in the long run,it will have a negative impact on the enterprise and affect the company’s value.To a certain extent,this is also because in order to maintain the stock price and maintain the position of control,the controlling shareholder carried out real earnings management behavior during the equity pledge period,and the overly relaxed credit sales policy led to an inflated increase in the company’s early operating income,and after a large number of accounts receivable could not be returned,the company’s net profit fell sharply,and operating activities could not generate cash inflow,and the financial risk of the enterprise was also aggravated.Finally,some measures to prevent the risk of equity pledge of controlling shareholders are derived.