Research On The Motivation And Economic Consequences Of Enlight Media’s Equity Pledge

In recent years,more and more companies have pledged equity in the capital market,and equity pledge has gradually become a common financing phenomenon.At the same time,there are more and more examples of stock price fluctuations and even "crashes" caused by equity pledges,which have triggered many incidents of large shareholders infringing the interests of small and medium shareholders.Therefore,it is very realistic to study the motivation of equity pledges and the economic consequences caused by them.significance.Due to the characteristics of the small proportion of fixed assets and the long-investment return period in the film and television animation industry,the proportion of equity pledged by listed companies in this industry and the growth rate of equity pledged scale are higher than most other industries.Therefore,the phenomenon of equity pledge in the film and animation industry deserves attention.This paper studies the equity pledge case of Enlight Media,and discusses the motivation and economic consequences of its equity pledge.First,the theoretical basis of this study is introduced,specifically the theory of control rights,the theory of information asymmetry and the theory of prioritized financing;then the motivation of equity pledge is analyzed from the external and internal factors;from the perspectives of financial performance,market performance,value creation ability,audit risk and governance structure,the paper analyzes the economic consequences of Enlight Media’s equity pledge by calculating EVA,event research method,and empirical analysis method,and finally gets relevant enlightenment.Through the above research,this paper finds that Enlight Media’s equity pledge improves its value creation ability,but also reduces its market value,increases its audit risk and weakens its governance structure.And got the following enlightenment:Listed companies should control the scale of pledge,select appropriate pledgees and rationally use the funds obtained from equity pledge;Enlight Media should introduce a special tripartite platform,take advantage of the information and professional advantages of tripartite platforms,and regularly publish information on equity pledges.A public report on behavior for the reference of small and medium investors.