The Impact Of Equity Pledge Financing Of LS Company On Corporate Value

With the continuous development of the capital market and the promotion of financial supervision,the financing of small and medium-sized high-tech enterprises is hardly solved,and the traditional financing way is gradually entering the "bottleneck" period.In view of this,in order to avoid enterprises falling into the development dilemma,exploring new financing channels has become a topic faced by many enterprises.With the continuous introduction of the national financial innovation policy,the market financing channels have been further expanded,and equity pledge financing emerges as the times require.Equity pledge financing for small and medium sized companies with "anemia" is a timely rain.It can help small and medium enterprises to pledge equity pledge to banks and other financial institutions,to invigorate stock assets and broaden financing channels,so the equity pledge has gained an explosive growth under the catalysis of capital market.However,while the equity pledge financing is difficult to solve the financial difficulties for the company,the potential risks of the equity pledge financing are gradually exposed because the large shareholders will use the weakening incentive mechanism of the equity pledge to weaken the incentive mechanism,and the potential risks of the equity pledge financing have been gradually exposed,and the widespread concern of the market has been aroused.Although the equity pledge financing is a financial behavior of the large shareholders themselves,it can have a far-reaching impact on the value of the listed companies.Based on this,this paper analyses the influence of the equity pledge financing of the large shareholders of the listed companies on the value of the company,which is of great practical significance.Starting with the direct and indirect influence of equity pledge financing to the company's value,this paper makes an in-depth investigation and research on the company's operating conditions,the large shareholders and the equity pledge financing,and finds that the LS company carries on the continuous equity pledge financing.It will bring about poor short-term market effect,deepen the separation of the two rights of the large shareholders,cause the interest embezzlement of the large shareholders,and increase the risk of the transfer of the control rights of the large shareholders,and ultimately cause significant adverse effects on the value of the company.In order to prevent the adverse effect from causing greater harm to the value of the company,it is necessary to find the main problem of the existence of the equitypledge financing of the large shareholders of LS company.Therefore,this paper constructs a research model based on time series to explore the influence of the two.First,we use factor analysis to evaluate the value of the company.Then,we return the equity pledge and the value of the company to get a conclusion that the high proportion of equity pledge financing will have a lot of adverse effects on the value of the company,and LS company is on the basis of the analysis of the value of the company.After a company's value decline,a high proportion of equity pledge financing is continued.Behind it,there are many management problems existing in the company.Therefore,in order to avoid the adverse impact of the equity pledge financing to the company's value,this paper suggests that LS company should strengthen the management and use of financing funds,improve the corporate governance structure,strengthen the corporate risk management,strengthen the disclosure of the equity pledge information and pay attention to the related policy changes so that the LS company can fully recognize the ownership of the stock.The dual nature of the pledged financing and its own management problems in order to enhance the company's ability to resist risks and resolve risks,so as to give full play to the positive role of equity pledge financing to the company and minimize its negative effects.