The Impact Of High Proportion Pledge Of Controlling Shareholders On Corporate Value

With its unique advantages,equity pledge has become a very important financing way for controlling shareholders of many listed companies to ease financing constraints.Some controlling shareholders even pledged all their shares of listed companies.As the largest shareholder of the enterprise,controlling shareholders have a vital impact on the survival and development of the enterprise.Therefore,controlling shareholders hold it up.The impact of pledge on listed companies has been the focus of many scholars.This paper hopes to explore the impact of controlling shareholders' high proportion of equity pledge on the value of listed companies through case studies.Considering the different financing environments faced by enterprises with different property rights,there will be great differences in supervision and management decision-making,and these factors will have a huge impact on the development and dissolution of controlling shareholders' equity pledge business.Therefore,this paper chooses controlling shareholders' high proportion of equity pledge behavior in different enterprises with different property rights nature to study,so as to make the conclusion of this study more reasonable.Based on the relevant literature and system,this paper defines the relevant concepts,elaborates the relevant theoretical basis,launches the theoretical analysis of this paper,and combs the relevant literature on equity pledge from different analysis perspectives;then,from the perspective of property rights,this paper makes a statistical analysis of the situation of equity pledge of A-share listed companies;finally,this paper chooses the existence of high ratio of controlling shareholders.Taking Zhonghong Share and Xinda Real Estate of State-owned Enterprise as research objects,this paper analyses the characteristics of equity pledge of controlling shareholders of two enterprises,the hidden risks behind the high proportion of equity pledge of controlling shareholders and the agency problems,and further explores the impact of high proportion of equity pledge of controlling shareholders on the value of the company.The conclusion of this study is drawn.Through statistics and analysis in this paper,it is found that the high proportion of equity pledge by controlling shareholders can easily lead to agency problems with small and medium shareholders,which may trigger the motivation of controlling shareholders' embezzlement and tunneling,and have a negative impact on the company's value.In addition,through comparative analysis,it is found that the controlling shareholders of private listed companies prefer the financing mode of high proportion equity pledge.The frequency of equity pledge is higher,the agency problem is more prominent,and the negative impact on corporate value is deeper.