Research On The Equity Pledge Risk Of The Large Shareholders Of H Company And Its Consequences

In today's capital market,listed companies are keen to use equity pledge for financing.but they also bring risks,such as moral hazard and transfer of control rights,while they have greater financing advantages.If the equity pledge ratio is too high and the use of' funds is opaque,it means that there is a motive for large shareholders to occupy small and medium shareholders and comporate interests.At the same time,if the company's share price collapses.the value of the equity will decline.If the major shareholder cannot redeem the pledged shares or supplement the pledge in advance,the pledgee may dispose of the pledged equity,thus causing the control of the major shareholder.Transfer.However,if the major shareholder reinvests the funds obtained from the equity pledge into its own company and actively operates,it will increase the working capital of the enterprise and have a positive impact on the development of the enterprise.Therefore,it is necessary to study the risks caused by the pledge of the shareholding of major shareholders and the consequences,and propose countermeasures to prevent them from being used for enterprise development.This paper first elaborates on the current research background,and summarizes the research status of equity pledge,including motivation,risk and consequences.After that,the information asymmetry theory,information siginal theory,two-power separation theory and risk identification and prevention theory are the theoretical support of the full text.The basic situation of H company's previous equity pledge is introduced,and the risk caused by H company equity pledge is also added.The analysis mainly includes moral hazard,control transfer risk and investment risk.Through the analysis of H company's financial performance and market performance,it is found that the equity pledge of the major shareholder of H Company has not only increased the working capital of the company,but also negatively affected the solvency,profitability,operational capability and growth ability of the company.At the same time,the financial performance of H Company is inferior to the A and D companies that have not conducted equity pledge in the same industry.In terms of market performance,the pledge of the major shareholder's equity makes H's excess return and accumulated excess return both negative.H company's high-frequency,large-scale equity pledge triggered the negative sentiment of investors,and the relationship with investors deteriorated,which is not conducive to the long-term stable development of enterprises,Finally,this paper proposes countermeasures against the risks and consequences of the equity pledge of' the major shareholder of H Company,including improving the information disclosure mechanism.strengthening the disclosure of the solvency of major shareholders and the information related to equity pledge;strengthening the pledge of equity of major shareholders The management,restricting the scale,frequency and time of equity pledge;optimizing the internal management of the enterprise,formulating scientific business strategy decisions,and establishing and perfecting the power balance system of the enterprise.Domestic film and television companies have frequent pledges of equity.This paper analyzes the equity pledge behavior of the major shareholders of H company,studies the risks and consequences,and proposes countermeasures to prevent the risk of equity pledge and its consequences,which is enriched to some extent.The relevant literature on the risks and consequences of the equity pledge of major shareholders provides a reference for 11 Company to formulate equity pledge decisions in the future,which has certain theoretical and practical significance.