Research On The Types Of Equity Pledge Of Controlling Shareholders And Investor Response

As China's national economic development enters the "new normal" of economic growth,listed companies face huge financial pressures and huge stock market volatility risks.In 2018,China's economic downward pressure continued,and the country "three to one and one subsidy" Under the policy environment,the financial industry responded positively and adopted the main policy tone of deleveraging,stable leverage,and risk prevention.Under the background of this environment,banks reduced their loans,the main financing methods of enterprises were blocked,and the financing road was riddled with holes.At the same time,the demand for business expansion and transformation of the company is soaring.Under the pressure of the company's development,the company's financial tension has become a normal state,and the high proportion of equity pledge,high frequency and high coverage have come out.With more and more listed companies pledgeing high positions,causing stock price volatility and forced liquidation,on January 12,2018 Shanghai and Shenzhen Stock Exchanges jointly issued China Stock Exchange to issue a stock pledged repo.The Trading and Registration and Settlement Business Measures(revised in 2018)will be officially implemented on March 12,2018,to limit the pervasiveness of the equity pledge.Market concerns and policy constraints also bring more topics to the risk of equity pledge.The sensitivity of equity pledge has risen once,will equity pledges necessarily bring negative economic effects to the company,and increase the chances of large shareholders squatting in the air? The author believes that the equity pledge in different models will have different expectations for investors,leading to different investors' recognition.From the perspective of the company's pledge model,the author believes that investors can observe the controlling shareholders' development of the company from more angles.Expectations,in order to better focus on the company's future development and business results.Therefore,investors should pay more attention to the different shareholding pledge models of controlling shareholders,so as to understand the economic effects of equity pledge under different equity pledge models.This paper selects two companies,Huayi Brothers and Skyworth Digital,as the case object,and analyzes the motivation of the controlling shareholder's equity pledge financing under different modes,the economic consequences of investors' recognition,and puts forward targeted suggestions.First,this paper introduces the background and significance of the research,and sorts out the theoretical basis needed to study the motivation and effect of equity pledge,and at the same time sorts and comments on the research literature of domestic and foreign scholars.Secondly,pledges the equity of the A-share market.Next,using the event research method,horizontal,vertical,financial analysis and other methods,the case of equity pledge of controlling shareholders of Huayi Brothers and Skyworth Digital Company was studied,and the motivation of controlling shareholders' equity pledge was analyzed.Investors' recognition and economic effects;Finally,draw conclusions and policy recommendations:(1)The controlling shareholder's equity pledge model can be divided into transport-type,encroachment-type and neutral-type equity pledge models according to different financing purposes and motives.(2)Different types of controlling shareholder pledges will lead to the opposite investor's approval.(3)The encroachment-type equity pledge is more likely to lead to the negative economic effects of the company,while the transport-type equity pledge is more likely to lead to positive economic effects.Based on the above conclusions,the paper puts forward relevant suggestions as follows:(1)Improve the governance of listed companies,strengthen the detailed disclosure of equity pledges(2)Strengthen the government's supervision of pledge information,strengthen the punishment of illegal pledges(3)Actively play the role of minority shareholders and The supervisory role of creditors.