Study On The Pledge Of Major Shareholders' Equity In Y Company

Equity pledge,an emerging financing mode,has attracted the attention and favor of the majority of listed companies in China in recent years,creating new highs in the scale and proportion of pledge.By 2018,there were 3,500 listed companies in China's capital market,and 1645 listed companies engaged in stock pledge behavior.The development of equity pledge in the domestic capital market is very strong.The pledgee of pledge of equity is usually the major shareholder of the listed company.The biggest advantage of pledge of equity is to convert the fixed equity value on the book into cash flow,so as to realize the secondary circulation of capital and solve the problem of capital shortage faced by the enterprise and major shareholders.However,because of the special status of major shareholders in listed companies,their equity pledge behavior has attracted much attention.Moreover,in the past two years,the stock market has been in turmoil,and many listed companies that have pledged their shares have been forced to close their positions due to the sharp drop in their share prices.This kind of event exposes the great hidden danger of equity pledge,and the research on equity pledge is becoming more and more important.Although the pledge of shares of major shareholders is their own financial behavior,their pledge of shares will also bring a great impact on the listed companies.This paper takes the pledge of equity of Y company as the research object and deeply studies the pledge of equity of major shareholders from the perspective of embezzlement of interests.It is concluded that the pledge of shares of major shareholders is likely to cause the principal-agent problem between major shareholders and small and medium-sized shareholders,turn it into a tool for major shareholders to seize the interests of small and medium-sized shareholders and the company,and realize the tunneling effect,so as to have a negative impact on the company value and stock price.On the one hand,after the implementation of equity pledge,the major shareholders actually recover the initial investment cost in a disguised way,reducing the tunneling cost.On the other hand,equity pledge directly leads to the restriction of cash flow rights of major shareholders,and their control rights are not affected,so the separation between control rights and cash flow rights further deepens the principal-agent problem.This paper first collects,summarizes and introduces many domestic and foreign literatures to briefly explain and summarize the concept and legal background ofequity pledge,and then studies the pledge behavior of major shareholders of Y company by case analysis method.In the process of analysis,this article first analyzes the major shareholder equity pledge motives,state of the equity pledge,then from the perspective of three concrete analysis major shareholder equity pledge of benefit expropriation problem,and then from the financial indicators,the market reaction of two main aspects of large shareholders' equity pledge the negative effects to the case company is analyzed.Moreover,reasons behind the problems of large shareholders equity pledge in-depth discussion,finally the author on how to prevent big shareholders equity pledge activities are used to infringe on the listed company and other shareholders puts forward some countermeasures and Suggestions,to comment on the current our country listed company equity pledge the use of the means of capital operation and effect,deepen investor understanding of equity pledge utility has a certain practical significance.This paper provides reference for the stock pledge behavior of listed companies.