Study On The Motivation And Economic Consequence Of Stockholders' Pledge Of Stock Control

Due to its low threshold,simple procedures,less restrictive conditions,and the advantages of easy liquidity and evaluability,power pledge has been accepted by more and more companies in recent years.The scale of equity pledges in A-shares is getting larger and larger,and the risk of equity pledges expending positions may become increasingly prominent with the introduction of new regulations.From the perspective of the original intention of equity pledge,it is understandable that controlling shareholders pledged shares of listed companies to obtain loans to meet their financing needs.However,the controlling shareholder's equity pledges are too frequent and the pledge rate is too high,which has brought some degree of anxiety and panic to the market.With the development of the capital market and the constraints of laws and regulations,the case of transfer of control rights through the use of equity pledges has gradually increased,and the interests of the majority of small and medium shareholders have been infringed.Possessions of different equity pledges generate different equity pledge consequences.The existing research on the infringement of the interests of listed companies by large shareholders is mostly based on the perspective of listed companies.There is insufficient research on short-term motivations at the individual level of major shareholders,and the corresponding lack of supervision mechanisms.Based on this,this article innovatively researches the behavior of controlling shareholder's personal equity pledge from the perspective of natural person controlling shareholder,trying to discuss that if the controlling shareholder does not need to pressure the group parent company to carry out the interest transfer,the equity pledge behavior will still bring the company and the small and medium shareholders To adversely affect it?Why does a natural person's controlling shareholder abandon its own control over equity pledges?This paper uses the case analysis method to analyze the motives of the shareholding pledge of the controlling shareholder of Tongzhou Electronic Co.,Ltd.,and analyzes the economic consequences of the equity pledge of the company from the aspects of short-term market reaction,the company's financial status and the impact on the company's value.And put forward corresponding countermeasures and suggestions on corporate governance from both inside and outside.In this paper,the following research conclusions are drawn on the frequent and large-scale pledges of company equity by Tongzhou Electronic's controlling shareholders:First,different motives have different economic consequences.When the controlling shareholder's personal capital turnover is difficult,the initial equity pledge will be based on the motivation of financing.As the proportion of pledged equity increases,the separation of control rights and cash flow rights will induce the controlling shareholders' interests to invade the motive and affect the management's investment.Business decisions affect the development of the company.The level of stock prices directly affects the amount of funds that are secured by equity pledges.Frequent and large-scale stock pledges lead to an increase in the proportion risk of closing positions is reached,the controlling shareholders have theof equity pledges.When the desire to increase stock prices,but in order to reduce risks,they have to Adding pledges reduces the value of the business.Second,the equity pledge itself belongs to the normal financing behavior of the controlling shareholder,but when the corporate finances deteriorate and the controlling shareholder loses confidence in the company,the controlling shareholder tends to give up the pledged equity based on the cost of redeeming the equity and the financing amount of the pledged equity.The violation of the rules resulted in the substantial separation of control rights and cash flow rights,aggravating the conflict of interest between the controlling shareholder and the small and medium shareholders and causing damage to the interests of small and medium shareholders.Third,the behavior of controlling shareholders' equity pledges will affect the company's investment decisions,which in turn will affect the company's financial performance.In turn,the company's financial status will also affect the controlling shareholders' equity pledged behavior.When the controlling shareholder considers for his own interests and the supervision is not strict,the internal equity structure and governance structure of the company is unreasonable,when the controlling shareholder does not have to be forced to transfer the interests of the parent company's pressure,the controlling shareholder may use the equity pledge to transfer control rights.It has an adverse effect on the company and small and medium shareholders.