Research On Growth Opportunities,Financing Constraints And Motives Of Equity Pledge

Equity pledge is to pledge equity to institutions or third parties to achieve direct financing.Because of its simple operation,fast speed and rapid development.Moreover,for the film and television industry,the speed of capital turnover is slow and financing difficulties have become common problems.In addition,the epidemic situation has a great impact on the development of enterprises.Equity pledge has become the first choice for the film and television industry.At present,there have been many researches on equity pledge.This thesis studies the influence mechanism of equity pledge motivation from the perspective of case study.In theory,the research on the motivation of equity pledge is enriched;in practice,the conclusion is drawn through analysis,which has corresponding reference significance for listed companies and external investors.This thesis mainly adopts the case study method,starts from the film and television industry,and compares the two influential companies in the industry with Enlight Media and Huayi Brothers,and analyzes the impact mechanism of equity pledge.First,the existing research is sorted out from the perspective of growth opportunities,financing constraints,motivation of equity pledge,and the economic consequences of equity pledge,summarizes the research ideas,and lists the research framework.Secondly,it introduces the two case companies,and then analyzes the impact of different growth opportunities on financing constraints,which leads to different equity pledge motivations.The study found that companies with different growth opportunities have different motivations for equity pledge.Companies with good growth ability can alleviate the financing constraints caused by equity pledge and increase financing convenience.Equity pledge financing can fill the company’s capital needs to expand its scale and promote listed companies.Development,so that the stock price soared,performance improved.On the contrary,if the listed company has poor growth ability,it will increase the financing constraints and the opportunistic behavior of the controlling shareholder.In order to avoid the negative impact of equity pledge and restrict the controlling shareholder’s motive for hollowing out,the article puts forward the following suggestions:first,the company’s equity pledge should be combined with growth opportunities,and companies with low growth opportunities should try to reduce equity pledge;second,strengthen the Internal governance of the company,strengthen the internal supervision and restraint mechanism for controlling shareholders;third,external regulatory authorities can force controlling shareholders to disclose information,restrain the motive of hollowing out of controlling shareholders,give full play to the positive impact of equity pledge,and promote the further development of enterprises.