Research On The Motivation And Economic Consequences Of The Pledge Of Controlling Shareholders' Equity In Listed Companies

Financing always plays an important role in the operation and development of enterprises.Due to the daily financing needs of enterprises and the rapid development of financial markets,various financing instruments are constantly emerging.In recent years,equity pledge financing has become more and more common in listed companies,especially in private listed companies.Compared with state-owned enterprises,private listed companies have always been in a weak position in financing.The channels of bank credit,bond financing,stock market financing and debt-to-equity swap are not very smooth for private listed companies.The advantages of equity pledge financing,such as convenience,rapidity and lower restrictions,enable listed companies to use this efficient financing method to solve financing needs.Equity pledge financing has brought many benefits to the company.It can quickly meet the company's financing needs,solve the problem of insufficient liquidity of the company's funds,and meet the company's external project investment needs.However,the development of anything has two sides.While equity pledge brings benefits to listed companies,it also hides certain risks.There are many problems in the process of equity pledge.For private listed companies,their ownership structure is usually more centralized,and the agency problem between controlling shareholders and minority shareholders is more prominent.The contradiction between them is mainly caused by the separation of control rights and cash flow rights caused by principal-agent.After the controlling shareholders choose the way of equity pledge financing,with a large number of shares pledged in their hands,the company's pledge rate is also rising.This financing mode closely combined with equity will directly affect the separation of the two rights of the controlling shareholders,and trigger the possibility of large shareholders to encroach on the interests of listed companies.At the same time,when controlling shareholders commit frequent and large-scale pledges,it will inevitably bring a variety of economic consequences to the company,including financial performance,value creativity,market reaction and so on.Carding literature and relevant theories at home and abroad,on the basis of this paper mainly adopts the method of case study,to ST zhongnan as the research object,through the combination of qualitative and quantitative way,respectively,using the financial ratios,economic value added and accumulated excess yield index,for the reason of company's controlling shareholder equity pledge and economic consequences for research,found that frequent and large equity pledge financing behavior will deepen the controlling shareholder of the two rights separation degree,which have adverse consequences for the company,reduce the value of the company;Secondly,it will have a negative impact on the financial performance and value creativity of listed companies.At the same time,it will bring negative market reaction to listed companies in a short period of time.Therefore,it is concluded that private listed companies should be more careful in making decisions in the process of strategic transformation.Finally from the perfect internal management,strengthening the supervision of the controlling shareholder equity pledge,perfecting the information disclosure rules of pledge of equity and to strengthen the risk management of their own its claim advice,hope to be able to equity pledge and the corporate governance of listed companies of our country provides some beneficial supplement.