Yaxing Chemical Company Performance Comparison Analysis

Nowadays,the financing of equity pledges is widely welcomed among the major shareholders of listed companies.However,for listed companies,the equity pledge financing method has certain risks.If a company’s pledged behavior is reasonable and legal,however,because some of the major shareholders failed to repay the debt within the prescribed time limit,the bank or the trust company may freeze their shares,and even forcibly auction their shares,causing the control to fall.On a certain level,the equity pledged financing can show the transmission power of the major shareholder interests.The ownership system responds to the disadvantages of agency that arise from the inability of cash flow rights and control rights to be unified.Further analysis shows that the equity pledge may increase the agency problems brought about by the separation of the two powers.The major shareholders may’ use extremely secretive methods.Gradually obtain the full profits of small and medium shareholdersThis paper first elaborates on the background of related research and the current status of equity pledge,and summarizes the research background,significance,content,methods and innovations of the pledge approach、The relevant literature was sorted out and summarized,and then it was elaborated in detail from the perspective of the proxy role of large shareholder equity pledges and the governance effectiveness of major shareholder equity pledges.Then it outlines the current situation of China’s equity pledge and takes the performance of listed companies as a perspective to analyze and study the impact of major shareholder equity pledges on them,from the perspectives of ethics,market,and disposal risk respectively,from the perspective of major shareholder equity pledges.,In-depth study and analysis of its impact on the performance of listed companies.Taking Yaxing Chemical as an example,it analyzed the development background of Yaxing Chemical Company,reviewed the current status of the development of its equity pledge,and mainly explained the behavior of short selling in the company,including the transfer of major shareholders and the transfer of control rights.In the end,the listed company’s financing behavior is more standardized and policy opinions are proposed.It mainly covers the legal content,supervision institutions,and the management system of listed companiesYaxing Chemical’s equity pledged behavior caused the performance of the company to deteriorate.It is not difficult to find through the failed example of Yaxing Chemical that the short-selling behavior of major shareholder’s equity pledges affected the interests of small and medium shareholders,which in turn made it possible for small and medium shareholders to share the same with large shareholders.Conflicts and conflicts arise that are detrimental to the company’s continuing operations and have a certain negative impact on company performance.Therefore,we should pay special attention to the issue of the majority shareholder’s equity in listed companies,not only understanding it as a financing behavior when the funds are in trouble,but should look at the issue from a deeper level and study its true intention through this phenomenon.In order to prevent more listed companies from appearing similar to Yaxing chemicals,listed companies should treat Yaxing Chemical’s stock pledge as a typical case,and face stricter and cautious attitudes in the face of pledged equity.