Research On Equity Pledge Financing Risk And Economic Consequences Of Enterprises In The NEEQ

SMEs have always had difficulties in financing.The “NEEQ” is an important platform for providing diversified financing services for SMEs in China.Recently,equity pledge financing has developed rapidly with its advantages of high financing efficiency,low cost and undiluted equity,and has become one of the important financing methods for the NEEQ.However,compared with the listed companies,they are small in scale,inadequate in operation,and information disclosure is not perfect.At the same time,the liquidity of the NEEQ is low,and the laws related to equity pledge are not sound enough.Once a risk event occurs,it will have a serious impact on the company,the minority shareholders and the pledgee.Therefore,it is of great significance to study the risks and economic consequences of the specific case of the equity pledge financing of the NEEQ.This article through the Huasheng Holdings equity pledge financing case,using the Z-value model,event research method,entropy method and efficacy coefficient method,combined with the industry level comparison,in-depth analysis of the equity pledge financing risk and economic consequences.This paper mainly analyzes the following risks:(1)The Z-value model measures the risk of transfer of control rights;(2)from three aspects of the situation that the actual controller's equity pledge is reduced,the current position of the tradable shares is unknown,and high pledge rate of pledge equity behavior to analyze the moral hazard;(3)by calculating the pledge rate,comparing the stock price trend with the warning line and the closing line to analyze the market risk;(4)from two angles: the difficulty to transfer the pledge of the equity and the transfer price is insufficient to pay off the debt to analyze the disposal risk.This paper analyzes the economic consequences from the perspectives of company,minority shareholders and pledgee:(1)Combining the event research method to analyze the short-term market reaction of equity pledge,the market's response tends to be negative.(2)The equity pledge debt defaulted,the equity was auctioned,the control transfer risk broke out,the actual controller changed,and many senior executives also left,which not only caused confusion in the management team,but also formed a certain impact on the stability and sustainability of the business.At the same time,the debt pledge of equity pledge funds caused the company's multiple bank accounts to be frozen,which affected the company's sales bids and business income.Through the entropy method and the efficacy coefficient method,it is finds that the financial indicators of the company's performance after the equity pledge are tending to deteriorate in the long run.(3)Combined with the industry level,analyzing the long-term financial performance of Huasheng Holdings during the pledge of equity from the four dimensions of profitability,solvency,growth ability and operational capability(4)The impact on minority shareholders was measured from the perspectives of shareholders' equity and stock market value.The results showed that the company's net assets decreased and the stock market value fell,which harmed the interests of small and medium shareholders.(5)The damage caused to the interests of the pledgee is mainly reflected in the difficulty in transferring the pledge of equity and the decline in the value of the equity.Enterprises are not careful enough to consider whether it is suitable to choose equity pledge financing and the selection of appropriate proportion,and then blindly choose financing.The specific use and direction of the equity pledge funds are not clear.Besides,the lack of awareness of the pledgee's risk prevention,and the construction of supervision system lags behind the development speed of equity pledge,which have also aggravated the risk of equity pledge financing.Therefore,the following suggestions are proposed:(1)Listed companies: Improving internal governance and control systems and setting up special funds for equity pledge.(2)Pledgee: The pledgee strengthens the risk prevention and full prevention and control risk.(3)Regulators: Improving regulatory policies and regulations and strengthening information disclosure.