A Case Study Of Letv's Equity Pledge Financing

In recent years,due to the rapid development of the Internet industry,a large number of Internet enterprises have sprung up rapidly,and the financing methods of listed companies have become diversified.Equity pledge financing,a convenient and fast way of financing,has been gradually used by listed companies.On the one hand,equity pledge financing does not need too many formalities and restrictions,and the national policy is relaxed.On the other hand,financial institutions are willing to use this simple operation to provide loans for listed companies in order to obtain high interest rates.In recent years,the amount and frequency of equity pledge of listed companies have been increasing year by year,and even some companies frequently pledge and reconcile pledge,which means that equity pledge financing has gradually changed from a small group of financing means to the mainstream.Letv(hereinafter referred to as Letv)is the research object of this paper.As an important member of the emerging Internet industry,Letv has the characteristics of industry-intensive.Its development needs a lot of funds and different business strategies from traditional industries.Due to Letv's "Great Leap Forward" development and unique business model in recent years,the shortage of funds has become the pain point of Letv,and equity pledge financing has gradually been widely used by large shareholders of Letv.On the one hand,equity pledge financing has solved a large number of financing needs for Letv and become Letv's main blood transfusion means.On the other hand,multiple equity pledge pledge has seriously increased Letv's financial and operational risks.On the other hand,the frequent changes of Letv's senior management and irresponsible practices of major controlling shareholders have left a wide range of public opinion.On or even denouncing.This paper focuses on Letv's equity pledge financing case from four perspectives:the motivation of Letv's equity pledge financing,the risks brought by equity pledge financing to Letv,the problems brought by equity pledge financing and the corresponding solutions.It is also hoped that Letv and regulatory agencies will take measures to avoid the equity pledge financing.All kinds of problems gradually promote the improvement of equity pledge financing system.