Risk Evaluation Of Equity Pledge For Chinese Enterprises In NEEQ Market

Equity financing is one of the main financing methods of enterprises listed on the NEEQ.It is being more and more popular Among SMEs because of the fast financing speed and that do not have to worry about the controlling stake.With the NEEQ equity pledge financing scale gradually expanded,the risk is also slowly exposed.The outbreak of events such as Fengsheng,Dongtian and Kelunbu caused widespread concern about the risk of equity pledge.Therefore,the risk analysis and evaluation of the NEEQ equity pledge,to it,is conducive to prevent the risk in advance and protect the healthy development of the new three-board market.Firstly,this paper reviews the current situation of the NEEQ equity pledge financing,and risk faced by the pledgee are analyzed with the NEEQ equity pledge risk event.Then it makes an empirical analysis on the default risk and market risk of the NEEQ equity pledge enterprises according to the actual situation of our country and the characteristics of the NEEQ enterprises.With respect to the risk of default,the regression model of asset value and volatility of the NEEQ is established by the PFM model,and the default risk is predicted by the default distance of the NEEQ.For the market risk,the VaR method is used to calculate the equity pledge ratio of the NEEQ enterprise and it turns out that the VaR method based on the GARCH model is more suitable than the delta-normal distribution method to measure the risk of stock pledge.In addition,the paper analyzes the default risk and the risk of equity pledge of the NEEQ enterprises.At last,the paper gives some policy suggestions for financing in the NEEQ,hoping to protect the healthy development of the NEEQ.The paper finds that risk of equity pledge in different industries is different.The.The risk of equity pledge is the highest in the material industry,followed by the information technology industry and the smallest in the industry.In addition,there is no obvious correlation between the default risk of the NEEQ and the risk of the NEEQ equity pledge,mainly reflected in the market risk.Meanwhile,the moral hazard caused by the large shareholders' encirclement also needs to be vigilant.