| With the development of capital market,a variety of new financing methods have emerged in China,among which equity pledge is chosen by more and more listed companies due to its own characteristics.Although equity pledge can effectively raise funds for listed companies,it will also cause some problems.Therefore,domestic and foreign scholars have conducted a lot of researches on it.This article took Lifan group as the research object,studied its equity pledge behavior.After studying the motivation and economic consequences of the shareholders' equity pledge,the researcher found some problems and gave some suggestions for Lifan group and other listed companies.The researcher found the motivation by the equity pledge announcement combining with company situation,and explored the economic consequences from five aspects,the separation of control rights and cash-flow rights,market effect,liquidation risk,financial risk and financial analysis.First,the researcher analyzed the degree of separation by calculating control right and cash flow right in different periods.Second,the researcher analyzed the impact of Lifan's equity pledge on the market effect through event analysis.Next,this article analyzed the liquidating risk of the equity pledge by calculating the early warning line and the level warehouse line.Then,the Z scoring model is used to analyze the influence of equity pledge on the financial risk.Finally,the financial performance of Lifan after equity pledge is analyzed through the four capability framework.In the end,the researcher found that the biggest motivation lies in that Lifan has great financial pressure.After the company takes frequent pledge equity,it brings a series of risks and has a negative impact on the company's performance.In this regard,Lifan group should limit the pledge of controlling shareholders,conduct various mays of financing,and reconsider the company's future development strategies. |
PDF Full Text Request