Research On The Risk Of Equity Pledge Financing Of Listed Companies

With the changes in the capital market environment and the increasingly stringent national credit policy,the financing situation of listed companies has become more and more difficult.Under the problems of difficulties in financing and difficulties in guaranteeing,equity pledge financing has become a new type of financing.This financing method converts "economic stock" into "economic flow",provides sufficient cash flow,and opens up more convenient channels for corporate financing,which is highly sought after by listed companies.Equity pledge financing has also generated a series of risks while alleviating the financial pressure of listed companies.In recent years,the scale of equity pledge and the proportion of pledge have continued to increase substantially.The A-share market is almost in a situation of "no stocks and no pledges",and the news that the company is on the verge of a crisis has been frequently exposed.Although the equity pledge financing is ostensibly a personal economic activity of a major shareholder unrelated to a listed company,it will not change the shareholding structure and financial status of the listed company.But in fact,because the majority shareholder has a special position in the listed company,the equity pledge financing behavior may increase the risk of the listed company,threatening the stability of the control,the company's production and operation,governance mechanism,stock price,dividend distribution policy All aspects have a greater impact.Therefore,it is particularly important to explore the risks of equity pledge financing of listed companies.Based on the review of domestic and foreign literatures,this paper sorts out the risks related concepts and theories of equity pledge financing.On this basis,the status quo of equity pledge financing of listed companies in China is analyzed and summarized from four aspects:overall scale,sector structure,industry distribution and main pledge.The case study of Huayi Brothers' equity pledge financing was conducted.Firstly,the equity pledge financing with frequent pledges,high pledge ratio,pledge pledge and pledge to restricted shares was described.Secondly,from the perspective of control risk,financial risk and market risk,the risk of corporate equity pledge financing is identified,and the risk causes are further analyzed.The risk of equity pledge financing of the company is evaluated by Z-scoring model.Finally,according to the conclusions of the case study,the paper puts forward the risk prevention measures for the listed company's equity pledge financing from the aspects of improving the internal corporate governance mechanism and strengthening the company's external supervision system,in order to standardize the equity pledge financing behavior of listed companies in China,reduce the risk of equity pledge financing,and promote The capital market is developing healthily.