Research On The Economic Consequences Of The Controlling Shareholders’ Stock Pledge

Global economy is recession after the financial crisis,with the background of the enterprises with financing needs,but meets financing difficulties,equity pledge financing arises.With the development of capital markets,equity pledge financing is becoming more and more popular,the market value of equity pledge and the proportion of equity pledge is also showing a rising trend.Through the equity pledge,listed companies will change the equity pledge to Banks and other financial institutions for financing,make the "static" equity assets into cash assets of "dynamic",increase the company’s financing opportunities.Controlling shareholders equity pledge,however,inevitably accompanied by the separation of control and cash flow right,this gives the controlling shareholders encroach on the company and the interests of minority shareholders motive and opportunity.Therefore,study after stock pledge how the controlling shareholder use the equity pledge unchanged the company to seek for his own profits and how to restrict controlling shareholders damage the company value and demand the interests of minority shareholders has become a top priority.In this paper,based on the above discussion,research on Dohia company.The content of the concrete arrangement is as follows: first,a brief introduction of the background of the research and the theoretical significance and practical significance of controlling shareholder equity pledge.Followed by a simple overview of the research situation of domestic and foreign scholars on the subject,summed up the main points.Introducing Dohia company,analysis the behavior of equity pledge of the company’s controlling shareholder of Dohia and the mode of operation of the company.Through the research of the behavior of Dohia company’s major shareholders and the operation of the company,we draw the conclusion: the behavior of equity pledge of the controlling shareholder demand the value of the company and demand the interests of minority shareholders.And further analysis shows that,due to the particularity of Dohia compared with many listed companies,less than a year of Dohia becoming a listed company,the company’s controlling shareholder come to pledge equity,at the same time with the company’s major shareholders changed the stocks to raise cash,combined with abnormal mode of operation after company listed,make us dpubt the ambition of the listed of Dohia So in the end,the article give the suggestion aimed at how to prevent the negative effects of controlling shareholders equity pledge Hope that through this study,alleviate the contradiction between controlling shareholders and minority shareholders,further standardize the activities of the controlling shareholders.How to use the equity pledge this way of financing advantages,to avoid the lack of it,also requires us to continuously explore in practice.