Research On The Motives And Economic Consequences Of Controlling Shareholder Pledge Financing

In recent years,especially after the economic crisis,the traditional industry has been hit a lot,while the Internet companies sudden emergence.Due to the particularity of the nature of the Internet industry,the demand for Internet enterprises is further increased.At the same time,with the economic environment changes,banks for loan procedures and audit is more stringent.Coupled with the inherent shortcomings of other financing methods,it makes equity pledged loans as a new way of financing,with its convenience and high-speed liquidity as more and more companies new means of financing means.Especially in recent years,the number and proportion of pledges show a rapid growth trend.This article first reviewed the equity pledge related literature at home and abroad,and then carried out a statistical analysis about the present situation of our country listed company equity pledge.We can look to whether equity pledge will be a negative impact on market,through the company Le networks controlling shareholders equity pledge case analysis,the motivation and the equity pledge short-term market reaction before and after the announcement.At last,through the research of listed companies after equity pledge reaction,we can analysis the listed company financial risks.On behalf of the networks,this article selects video industry used frequently with its controlling shareholder equity pledge financing as the breakthrough point,to research the financing strategy of motive and its influence to the listed company.Through the market reaction of equity pledge before and after the announcement,and after the financial reaction,found that when the pledge funds flow to the listed company,the market is a positive reaction,but frequently use equity pledge financing way will be on the operating performance of listed companies,cash flow,financing structure and management produce certain effect,resulting in a risk.At last,I give relevant policy recommendations,in order to make full use of the advantage of equity pledge,avoid its disadvantages.