The Risk And Precaution Of Controlling Shareholders'Equity Pledge Financing Of LS Company

In recent years,the frequent pledge of equity held by private controlling shareholders has attracted more and more attention from the society.On the one hand,equity pledge has solved the problem of financing of listed companies.On the other hand,it also brings various risks to the listed companies,the controlling shareholders,the creditors and the small and medium shareholders,while alleviating the capital pressure of the controlling shareholders.Controlling shareholders can gain private benefits of control by controlling power and encroach on the interests of listed companies and minority shareholders.The equity pledge of controlling shareholders in China's listed companies is very common and the proportion of equity pledge is very high.As a new financing way that has just appeared,the equity pledge has widened the financing channels of the company.Equity pledge indicates the difficulty of the capital shortage of the controlling shareholders.They use this way to obtain funds and transfer the risk of the fall of equity value to the pledgee,which will reduce the cost of plundering the interests of small and medium shareholders,thus aggravating the contradiction between them.Therefore,it is of great research value and practical significance to study the risk of equity pledge to small and medium shareholders and its preventive measures.From the perspective of small and medium shareholders,this paper analyzes the risks brought by the equity pledge financing of the controlling shareholders and the preventive measuresTaking LS company's controlling shareholder pledge pledge as an example,this article focuses on the risk that this incident brings to minority shareholders.And how to prevent it.The first part focuses on the background and significance of the research,the content and methods of the study,and also summarizes the academic papers and academic works on the equity pledge and its risks at home and abroad,and summarizes the previous arguments and reviews it.The second part mainly defines the relevant concepts,including controlling shareholders,equity pledge and minority shareholders.From the perspective of principal-agent theory,the theory of private benefits of control and tunneling effect,the theoretical framework of the article is established and theoretical analysis is carried out.The third part is the analysis of the actual cases of LS company,including the introduction of background information,the investment of equity pledge funds,and the use of financial indicators to compare the changes in the performance of the company before and after the stock pledge.The fourth part focuses on the evaluation and analysis of the risks and risks that the controlling shareholders may bring to the small and medium shareholders after the pledge of equity,including the risk of the suspension,the risk caused by the failure of the holding shareholders,the risk of the fall of the share value,the risk of the fall of the equity value and the decline of the company's operating perf-ormance.The risk of stock price collapse.The fifth part puts forward corresponding countermeasures and suggestions for risk prevention so as to provide reference for safeguarding the interests of minority shareholders.The sixth part writes the conclusion of the case and the enlightenment to LS,controlling shareholders,small and medium shareholders and other private listed companiesThe results of the case show that in private listed companies,a large number of frequent stock pledge of LS holding shareholders will aggravate the situation of the company,reduce the value of the company,and eventually occupy the interests of small and medium shareholders and creditors,and bring huge risks to the small and medium shareholders.In view of the results of the case study,this article hopes to protect the interests of small and medium shareholders by perfecting the legal system,improving the internal governance of the company,strengthening the external supervision and strengthening the risk prevention and control of the small and medium shareholders.