Research On The Pledge Of Stock Right Of Letv

In recent years,there has been a high-frequency word-equity pledge in the series of problems that have emerged in China's listed companies.In particular,with the rapid development of China's capital market and the diversification of financing channels in recent years,equity has become a hot-wrapped pledge and is used mostly by listed companies.The equity pledge has broadened the company's financing channels.The advantages of simple procedures,relatively simple procedures,and limited restrictions have made it an option for more companies.Therefore,in recent years,both the absolute number and the relative proportion,the equity pledge has shown a rising trend.However,behind this,the scandal on equity pledges has also appeared frequently.This has also led to our thinking.Although equity pledges have various non-negligible aspects,there are various kinds of equity pledges that have a negative impact on company development and shareholders' interests.The problem is also worth our attention and research.Because the current supervision and regulations related to equity pledge are not standardized,the interests of small and medium shareholders are easily violated due to the information asymmetry between large shareholders and small and medium shareholders caused by insufficient disclosure of equity pledge information.There are also more opportunities for short companies.Equity pledges appeared later in China,but the development was surprising,affecting a large number of listed companies represented by music.However,although it has been widely applied in practice,the field of theoretical research has been slightly lacking.Therefore,the study of equity pledges has become very important.LeTV,as a regular customer of equity pledges,recently experienced a sharp decline in stock prices.The equity pledges that used to be a financing channel have now become the company's biggest source of risk.With Jia Yueting resigning from his position in LeTV,the company that initially became known as the “first video website” has a confusing future.During the six years from 2011 to 2017,Jia Yueting has conducted nearly 35 equity pledges.On October 26,2015,Jia Yueting pledged507 million shares held by him once,accounting for 64.81% of his shares held by LeTV.Under this high-frequency large-scale equity pledge,the rights and interests ofsmall and medium-sized investors are ignored by large shareholders.The article first introduced basic concepts and theories such as equity pledges,control rights,cash flow rights,and principal-agent theory that must be understood when discussing equity pledges.Afterwards,it introduced the background information and financing situation of LeTV from the establishment and listing of the company,including his direct financing situation and equity pledge status.According to LeTV's equity pledge and the status of its operation and management,the issue of the existence of equity pledges was proposed.The equity pledges have the problem of too high frequency of pledge and too large number of mortgages.At the same time,it also greatly enhances the company's risk of liquidation,the shareholders monopolize the control rights,and does not attach importance to the rights and interests of small and medium shareholders.By refining the issues,according to LeTV's company announcements,financial information and stock market performance in recent years,the causes of these problems were analyzed and the parallel charts were clearly illustrated.Finally,reasonable and operative suggestions are made on how to improve these issues.Taking LeTV as an example,it explains and analyzes the various problems in the equity pledge of LeTV.At the same time,it proposes solutions and suggestions for the problems,aiming at allowing listed companies to take full advantage of the benefits of equity pledges while taking into account There are many risks and problems caused by equity pledges.