An Empirical Study On The Effect Of Shareholder’s Equity Pledge On Private Placement

Ownership structure of corporate governance is an important research direction.China’s capital market development started late, a large number of listed companies with controlling shareholders of shareholders, board of directors, and other listed companies will always do the core class. Under this ownership structure with Chinese characteristics, accounting research from the initial shareholders a proxy conflict management, more and more attention to controlling shareholders a proxy conflict between the minority shareholders. Controlling shareholders using the absolute right to speak bribes for listed companies, would infringe on the interests of minority shareholders to some extent. During the equity pledge, voting rights are not affected China’s capital market is more prominent.The first single well documented Century Plaza Hotel from June 10,2003 (000033.SH) since the equity pledge, as of August 18,2015, there were 19 255 times the equity pledge, pledge a total of 648,195,226,995 shares. Equity pledge acts shareholders of listed companies is very common, and a very high proportion of equity pledge. For equity pledge to conduct, controlling shareholders can indicate a strong demand for capital, of course, can also be locked by the controlling shareholder equity pledge asset value of equity, to prevent the risk of depreciation due to the secondary equity market price movements caused.As listed companies in highly concentrated ownership structure, the controlling shareholder of the substantive process easier to use means of transfer of benefits through a private placement of listed companies in the process, but as a special equity pledge financing shareholders, the controlling shareholder of the transfer of benefits provided the sources of funding. Transfer of benefits not only cause harm to listed companies, but also damage the interests of minority shareholders. Since the split share structure reform, equity pledge has become an important means of controlling shareholder financing, while private placement has become an important way of refinancing of listed companies, and some studies show that the presence of listed companies in China targeting the major shareholder of additional interests in transport phenomena.In this paper, the behavior of listed companies equity pledge a year ago half of the private placement occurred controlling shareholder for the study, a comprehensive comparison of listed companies during the year did not occur, the equity pledge and occurred in a year of private placement. We have done a lot of research on various attributes of private placement. On the one hand the purpose is to provide an empirical basis for accounting staff research agency conflict theory, on the other hand the law of equity pledge involving different jurisdictions including property law, debt law, corporate law, securities law, financial law. Research is difficult, at present only for legal rights and obligations of the pledgee and the pledgor’s objections have been raised, this article from a unique perspective to see the issue of equity pledge to provide strong material for the revision of future property law and debt law.