Research On Financial Risk Of Equity Pledged Companies

In recent years,equity pledge transactions have become more frequent and have become a popular way for listed company controlling shareholders to raise funds.However,the market is not mature,and relevant laws and regulations are still not perfect.This type of financing also hides a large risk.The direct economic consequence is that after the 2017,the pledge of equity pledges of several companies has directly sounded the alarm.However,the company that has not revealed the crisis after the controlling shareholder's equity pledge is the main part of the market.After the controlling shareholder's high proportion of equity pledge,it will face the risk of transfer of control rights and personal financial leverage.The construction of listed companies in China has prompted controlling shareholders to have absolute right to speak to listed companies.At this time,if the controlling shareholder adopts corporate governance to make a series of unreasonable financial behaviors such as maintaining a stock price for the concept of hot investment,or to protect their own interests.When making a short-selling company's financial behavior,it will directly affect the company's financial risk,which in turn will affect the company's sustainable development.In the current research,few scholars use the controlling shareholder's equity pledge as the entry point to study the financial risk of listed companies,and the size of the company's financial risk directly determines whether the company can continue to operate,so study the influence of controlling shareholders on the company's financial risk.This paper takes Hunan Qianshan Pharmaceutical Machinery Co.,Ltd.(referred to as Qianshan Pharmaceutical Machinery Co.,Ltd.)as the case study object,mainly based on the theory of principal agent and private interest of control,analyzes the controlling shareholder's equity pledge to protect its own interests,and will be the overall financial of the company.Behavior has an impact,and this financial behavior will lead to an increase in the company's financial risk,which will lead to the company's financial crisis.The article first discusses the overall situation and existing problems of the current equity pledge in China,and explicitly studies the necessity of the controlling shareholder's equity pledge on the company's overall financial risk,and then focuses on a series of financial behaviors such as conceptual over-investment after the controlling shareholder's equity pledge.Analysis of related party transactions,related party guarantees and non-operating capital occupation,and using relevant financial risk indicators and operating results to analyze,it is concluded that the controlling shareholder's equity pledge will be controlled by its own interests.The right to make the company take certain financial actions,and this financial behavior will directly lead to the increase of the company's financial risks,and put forward some suggestions on how to prevent this risk,in order to prevent and resolve the financial risks that may be brought about by the controlling shareholder's equity pledge.