The Impact Of Equity Pledge On The Company’s Financial Risk

Equity pledge is a financing method for shareholders of listed companies to pledge all or part of their shares to a third party to obtain funds.It has the characteristics of simple circulation,simple operation and few restrictions,and effectively alleviates the shortage of shareholders’ funds.The controlling shareholder still retains control of the company after pledge,so it has become a widely accepted and popular financing method by the company’s shareholders and financial institutions.At present,equity pledge financing is in a rapid development stage,and the number and market value of companies engaged in pledge transactions are increasing,Some of the controlling shareholders were sold out because they could not release the pledge in time,which has brought serious negative effects to the company,even the company’s continuous operation.With the soaring of the equity deposit position of more and more listed companies,the financial risks related to the company’s equity obligations have also received more and more attention Taking a limited company as the research object,this paper analyzes the impact of the choice of controlling shareholders of equity pledge on the financial risk of the company by using the literature research method and case analysis method.First,Using relevant literature,including domestic and foreign research,this paper comprehensively explains and analyzes the motivation and process of Tangde Film and Television’s equity commitment;second,investment risk;From the perspective of financing risk and liquidity risk,the impact path of equity debt on financial risk is investigated.Tangde Pictures combines the published financial data and relevant financial indicators,from the perspective of solvency,operability After analyzing the changes in operability,the financial risk of the company is comprehensively evaluated according to the measurement results of the Z-Score value of the multivariate model.According to the extensive research on Tangde Film and Television,the equity obligations of the controlling shareholders of Tangde Film and Television will have a negative impact on the financial risk of the company.The survey shows that the equity pledge of the controlling shareholders is related to the financial risk,and the high proportion of equity pledge aggravates the financial risk of the company.Equity is positively related to the financial risk of the company.According to the case analysis results,this paper puts forward suggestions to effectively prevent the financial risk of the company from four aspects: optimizing the company’s investment projects,improving the level of internal supervision,improving the information disclosure system of equity pledge,and strengthening the effectiveness of external supervision.Remind shareholders to carefully choose financing methods,support small and medium-sized shareholders and market investors to clearly and accurately understand the equity pledge behavior of controlling shareholders,and ensure the stable development of the capital market;investigate the financial risk impact of the equity obligations of controlling shareholders of Dangde Film and Television in China It can provide certain standards and standards for the developer’s company.