Research On Listed Companies' Equity Pledge Financing In The NEEQ

The financing problem has always been the bottleneck that restricts the development of SMEs.The establishment of the NEEQ provides a platform for SMEs financing.And Many SMEs list on the NEEQ to solve financing problems.In recent years,more and more listed companies have chosen equity pledge financing.Research on Listed Companies' Equity Pledge Financing in the NEEQ is one of the research hotspots.This paper selects Z Company as a case,bases on the basic situation and financing status of the case company,and researches the case company's equity pledged financing business by case study and event study.Firstly,it analyzes the reasons for the company's choice of equity pledge financing from financing theories,financing channels,and company capital structure.Secondly,it analyzes the financing effects from financing efficiency,financing cost,freedom of use of fund,and short-term market performance.It is found that equity pledge financing has advantages in terms of financing speed,protection of control rights,financing cost,freedom of use of funds,etc.And equity pledge financing also has a positive impact on the company's operating level and short-term market performance.However,this financing method also has problems such as market risk,equity liquidity risk,moral hazard and financial risk.Finally,based on the summary of the paper,the countermeasures and suggestions for encouraging securities companies to actively participate,improving the liquidity of the NEEQ and paying close attention to financing risks are proposed.