| The agency problem caused by the inconsistency interest between the owner and the management is always the focus of corporate governance.However,in the case of ownership concentration,the second agency problem between major and minor shareholders has attracted more and more scholars' attention.The separation of control rights and cash flow rights is the main cause of the conflict of interest between the major shareholders and the minority shareholders,and the tunneling behavior of the major shareholders is carried out by means of illegal guarantees,misappropriation of funds and so on.Because of its strong liquidity,easy to be disposed and control the risk,equity pledge financing has become favored by the majority shareholders of listed companies in recent years,and also accepted by the banks.As the pledgor,the major shareholders can not only get the money,but also maintain their position as a major shareholder after pledging their equities,and as a result equity pledge has become one preferred means of financing for listed companies which are controlled by private or private enterprises.In this case,how the equity pledge of major shareholders affects the value of the company has become a topic of concern to scholars.This paper studies the impact of the equity pledge behavior of major shareholders on the value of the listed company in order to deepen the research on equity pledge,identify that the equity pledge of majority shareholder is to support or encroach on the interests of the company for the investors and provide some proposals for the regulation on regulating equity pledge.Taking the company Oceanwide Holdings as an example,this paper studies the impact of the equity pledge behavior of large shareholders on the value of the listed company.Firstly,through combing the domestic and foreign literature,this paper finds most of scholars believe that equity pledge of the large shareholder will exacerbate the separation of the cash flow rights and the control rights,and lead to more serious agency problems,thereby reduces the value of the company.But,some scholars give the opposite conclusion that the equity pledge of major shareholders of private enterprises will have strong motivation to improve the performance of listed companies,or the impact of equity pledge on corporate performance is positive correlation from different angles.Secondly,this paper elaborates the theoretical basis-agency theory,equity concentration situation is very common in China's listed companies so that the second agency problems are more prominent,then discusses the concept of equity pledge,the risk and motivation of equity pledge,and explains the concept of separation of two rights meanwhile.Thirdly,this paper introduces the case company,analyzes the degree of the separation of the cash flow rights and the control rights and operating conditions of the listed companies;then this paper evaluates the value of the company in 2011 to 2015 years,uses the EVA model and Tobin's Q to stduy the influence of the pledge of shares on the value of the company,and analyzes the impact of equity pledge behavior on stock price in the short term with Event Study method;lastly applies Z-scoring model to analyze the impact of equity pledge on corporate finance.On the basis of the foregoing analysis,the conclusion of this paper is that,the long-term,frequent and high proportion equity pledge behavior of the major shareholder of Oceanwide Holdings increases the degree of separation of the cash flow rights and the control rights,and enhances the company's financial risk.Moreover,it has a negative impact on the value of listed company over a long period of time.But,due to the particularity of China's capital market,the equity pledge has no significant impact on the stock price in the short term.At last,this paper offers proposals that major shareholders of listed companies should disclose the equity pledge information as detailed as possible,and regulatory agencies must enact specific laws as soon as possible to regulate equity pledge. |
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