Research On Risk Evaluation Of Equity Pledge Of Controlling Shareholders Of Listed Companies Case Study Of Huayi

Equity is actually a right.Many people now pledge equity to obtain funds.This has become a common financing method,and the company's controlling shareholders like to use this method for financing.The company's controlling shareholders wanted to turn the equity they held into liquid cash,and they began to continuously pledge equity,and the proportion of pledges became higher and higher.Some controlling shareholders want to realize their own equity.For these "ulterior motivated" controlling shareholders,equity pledge can both obtain funds and maintain the status of controlling shareholders.The obtained funds can be regarded as recovering the funds originally invested.Cost,so the cost of hollowing out the company while encroaching on benefits is getting smaller and smaller;secondly,after the controlling shareholder's equity pledge,part of the cash flow right will be lost,while maintaining the same control right,and the separation of the two rights is becoming more and more serious.Controlling shareholders are more prone to misappropriation of interests.At this time,because the information obtained by the controlling shareholder and the minority shareholders is not the same,this creates opportunities for the controlling shareholder's interests to be embezzled.The controlling shareholder usually misappropriates the interests of small and medium shareholders and enterprises after the pledge of equity,resulting in an inestimable negative impact on the company.Therefore,it is of research value to separate the risk of occupation.This paper first consulted a large amount of domestic and foreign literature,completed the definition of the concept of equity pledge and the risk of equity pledge invasion,and then conducted a statistical analysis on the number of listed companies that have pledged equity in China,analyzed the specific situation of the development of equity pledge in China,and then selected the recent paragraphs.Huayi Brothers Co.,Ltd.,a representative company at the time,conducted a case analysis because the controlling shareholder's equity pledged proportion of Huayi Brothers' company in 2018 was as high as 99%,which also caused a large negative impact on the company.Therefore,this article elaborates on the specific situation,motivation,and economic consequences of Huayi Brothers' equity pledge.Finally,because there are many ways for controlling shareholders to secretly transfer benefits,there have been many cases of financial fraud in recent years.Among them,the use of equity pledges to transfer company assets is not rare.Therefore,the author believes that equity pledges have certain similarities with financial frauds.Therefore,combining the analytic hierarchy process with the fraud factor theory,the risk is first divided into five dimensions: moral level,motivation level,opportunity level,exposure possibility level,and punishment level level.Then select indicators for each level,build a model,obtain data by sending questionnaires,analyze the weight of each indicator,and finally give a risk level by fuzzy comprehensive evaluation method.The fuzzy comprehensive evaluation model is used to calculate the risk of the risk factors in each dimension.Based on this case,it can be concluded that morality and motivation have a greater impact on the appropriation risk of equity pledge.The result of the appraisal risk evaluation of Huayi Brothers' equity pledge is General conclusion.Based on the evaluation results,a possible effective countermeasure is proposed for the risk of embezzlement facing Huayi Brothers.By studying this case,on the one hand,the reasons why the controlling shareholders can successfully invade their interests through equity pledges can be found out;on the other hand,effective preventive measures can be proposed for other enterprises and industry regulators.Regardless of whether the company's controlling shareholder is in good faith or malicious,as long as he pledges equity,it will lead to a series of risk issues.After analyzing and researching the most important and intuitive encroachment risks,this article proposes corresponding countermeasures for each risk factor.It is hoped that the analysis and countermeasures in this article will sound the alarm for other companies in the same industry and promote the market and industry progress.