The Study On The Motivation And Economic Consequences Of Equity Pledge By Controlling Shareholders Of Listed Companies In The Film And Television Industry

In May 2013,the "Measures for Stock Pledged Repurchase Transactions and Registration and Settlement Business(for Trial Implementation)" was released.After the opening of onexchange pledges,the scale of on-exchange pledges has continued to increase,and equity pledges in China capital market have also developed rapidly and market value soared.From2013 to 2015,the stock price continued to rise,and the pledge risk was reduced accordingly,and financial institutions such as banks and securities companies were also more willing to accept equity pledges.When the stock market crash in 2015 came,the stock price continued to fall,the pledged stocks continued to explode,and the pledge rate was also reduced to 30% under the influence of the stock market crash.After 2015,Chinese economy has begun to recover steadily,the A-share market has gradually improved,and the equity pledge business has gradually recovered.However,in 2018,the new regulations on equity pledge were introduced,which more strictly stipulated the pledge rate and other aspects,and urged relevant enterprises to do a good job in the prevention of equity pledge risks.After 2018,under the influence of the weak stock market and new regulations,equity pledge business has been limited and relatively slow,but there are still many companies that choose to conduct equity pledge business.Today,China has entered a rapid economic development,and film and television culture is inseparable from the lives of ordinary people.It can be foreseen that in the next ten years,the film and television industry will be a sustainable sunshine industry.While the film and television industry drives related economic development,the matching financial support has not kept up,and "financing difficulties" almost accompanies the growth of most film and television companies.Most film and television companies have been established for a short period of time,have less heavy assets,and have no stable expected output.If the financing application of film and television companies is simply and rudely put into the "standard quantitative risk assessment template",few companies can pass.Equity pledge is a very effective solution to the company’s current capital shortage problem and lays the foundation for the company’s future development.Now equity pledge financing has also become a common choice for listed companies.In recent years,the entrepreneur in the film and television industry have also frequently been "hot searched" because of equity pledges,which have also attracted the attention of the market and investors.The series of "liquidation" events of listed companies in film and television industry due to equity pledge have further triggered the discussion on equity pledge in the society.Equity pledge brings a variety of negative economic effects to the company,and the film and television industry will also face greater risks due to a high proportion of pledges,causing negative sentiment among investors.Therefore,for listed companies in the film and television industry,it is very necessary to understand the economic consequences of equity pledge to the company.At present,the research on equity pledge in foreign countries is relatively mature,and the development of my country’s capital market started relatively late,and there is no rich and detailed theoretical support for equity pledge.Domestic and foreign literatures mainly study the relationship between corporate agency conflict,corporate management,market reflection,and corporate performance,and the issue of equity pledge.The influence of equity pledge on the economic consequences of an industry has not been supported by abundant theories.Based on the above background,taking Ciwen media as the research case,this paper comprehensively uses the case study method,event study method and financial index analysis method to explore the motivation and economic consequences of equity pledge of Listed Companies in the film.Firstly,it introduces the research background and significance of this paper,summarizes the relevant literature at home and abroad,as well as the writing ideas and content of this paper.Secondly,the theoretical basis related to equity pledge is explained.After that,the current situation of equity pledge in the film and television industry is described and analyzed,and Ciwen Media,which is a typical case of equity pledge in the film and television industry and has received public attention,is selected as a case.First,it introduces Ciwen Media,and then introduces the process and situation of Ciwen Media’s controlling shareholder’s equity pledge,and explains the motivation of Ciwen Media’s equity pledge.Then,it uses the financial index method to conduct an in-depth analysis of the equity pledge of Ciwen Media,evaluates the impact of equity pledge on the company’s financial performance,and uses non-financial index analysis to comprehensively reflect the economic consequences of equity pledge on the company from multiple dimensions.Finally,through the above analysis,reasonable suggestions are put forward for the equity pledge behavior of listed companies in the film and television industry.From the perspective of the entire industry,it is necessary to improve the corresponding system,improve the relevant laws and regulations,alleviate the financing difficulties of the film and television industry,and make more detailed disclosure of equity pledge behavior.For the listed companies in the film and television industry themselves,they should strengthen the internal governance of the company,improve the company’s operating mechanism,improve the right of small and medium shareholders to know,and reduce agency conflicts.Finally,according to the above analysis and summary,the conclusion is drawn and the shortcomings of this study are pointed out.The conclusions are as follows: First,a high proportion of equity pledges will bring short-term negative market reactions to the company,while a low proportion of controlling shareholders’ equity pledges will not bring negative market reactions to the company;The performance of the company will have a negative impact,while the behavior of a low proportion of controlling shareholders has little negative impact on the company’s long-term performance;third,the behavior of controlling shareholders’ equity pledge will reduce the value of the enterprise,while the behavior of a low proportion of shareholders’ equity pledge will not have a greater impact on the company’s value.Impact.The innovation of this paper is to combine specific cases,consider different proportions of equity pledges before and after the transfer of control by controlling shareholders,and use financial and non-financial indicators to analyze short-term market reactions,long-term corporate performance,corporate value,and control and cash flow rights.The degree of separation shows the economic consequences of equity pledge to the enterprise,which makes the conclusion more comprehensive and objective.In this paper,the influence of other factors has not been completely excluded,the results are not accurate enough,and the data collection is not comprehensive.