Risk Management Of Pledged Stock For Shareholders In Case Study Reasearch Of Huishan Dairy Holdings Company Limited

As a new type of financing,equity pledge has been widely concerned and widely used by enterprises.The rational use of equity pledge can alleviate the pressure on the funds needed for the company’s operation and development.However,some of the company’s controlling shareholders use the company’s internal control system is not perfect,the external supervision mechanism is not perfect,and the information asymmetry loopholes,excessive equity pledge behavior,the equity pledge is turned into a tool for self-interest transfer,thus the company’s development Caused a variety of risks.From many cases,it is found that although the equity pledge behavior is gradually normalized,there are not many studies on the behavior of controlling shareholders’ equity pledge,especially the existing literature on equity pledge risk control is rare.This paper selects Huishan Dairy as a case study company.The equity pledge rate of Huishan Dairy’s controlling shareholder is as high as 97%.It is a typical high-value pledge enterprise with typicality and representativeness.Huishan Dairy is facing a shortage of funds,and other financing channels are limited.In addition,the equity pledge is supported by the government and the motives of the controlling shareholders.Therefore,the equity pledge financing method is chosen.However,the equity pledge not only did not improve the operating conditions and financial status of Huishan Dairy,but accelerated the stock price plunging and the market value of diving,which caused the company to stop trading in 2017,and there is no sign of resumption of trading.The controlling shareholder’s equity pledge has brought the control transfer risk,controlling shareholder’s interest transfer risk,financial risk and stock price collapse risk to Huishan Dairy.The focus of this paper is on the controlling shareholder’s interest transfer risk and financial risk.Through the analysis of Huishan Dairy’s process from equity pledge to risk explosion,it is found that the risk in the equity pledge process is not uncontrollable,as long as the internal and external departments of the enterprise take reasonable risk control measures,the risk of equity pledge It will be greatly reduced to avoid these risks.Previous research has focused on the impact of controlling shareholder pledge behavior on company value and economic consequences,but lacks sufficient attention to risk control issues.In this paper,Huishan Dairy,which is representative of equity pledge,is a case company.It analyzes the risks brought by the controlling shareholder’s equity pledge to the company and draws relevant risk control measures and conclusions.Through the risk analysis of the case,the study found that the main risk brought by the controlling shareholder’s equity pledge to Huishan Dairy is the controlling shareholder’s interest transfer risk,the second largest risk is financial risk,and the controlling shareholder’s equity pledge risk is caused by the company’s internal The imperfect control system and the external supervision mechanism are not perfect.Therefore,controlling the risks in the equity pledge process requires the joint efforts of the company’s internal management and external relevant departments.This paper attempts to analyze the reasons for Huishan Dairy’s equity pledge,to understand the impact of controlling shareholder pledge on the case company itself,creditors and capital market,and analyze the risks posed by the controlling shareholder’s equity pledge to the company and the main reasons for these risks.Then,it sums up the countermeasures to control the shareholder’s equity pledge risk,and based on the case analysis,summarizes the enlightenment of the controlling shareholder’s equity pledge behavior,and provides reference for the future operation and risk control of equity pledge in the capital market.