Study On The Influence Of Pledge Of Major Shareholder’s Equity On The Risk And Value Of Guirenniao Company

Financing,investment and profit distribution are the three modules of the company’s operation,while financing is the first step of the company’s development.Since the implementation of China’s "deleveraging" policy,traditional financing methods(bank loans,new issues,corporate bonds,other forms of private capital)have been greatly constrained.Equity pledge financing has the advantages of fewer procedures,fewer restrictions,relatively lower costs and no change in the shareholding structure of the company’s shareholders.Therefore,more and more major shareholders of the company tend to obtain financing in this way.However,frequent and high proportion of large shareholders’ equity pledge will bring some risks to the company.Is particularly important,usually after the big shareholder equity pledge,two rights separation phenomenon that big shareholders enjoy rights and obligations by severe unequal in avoiding the motivation of control transfer,rights temporarily is greater than the obligations of large shareholders tend to choose high risk of investment,the foreign guarantee,related party transactions,the decrease of cash dividend means as much as possible to maintain their own interests,such as erosion of the interests of small and medium shareholders.In the end,the pledge of major shareholders’ equity will lead to the continuous decline in the value of the company.Based on the clue of the pledge of major shareholders’ equity(the proportion of pledge is increasing year by year)--the change of the company’s corresponding risks under the pledge of major shareholders’ equity--the change of the company’s value,this paper introduced Guirenniao company as a specific research object,and analyzed the relevant data of Guirenniao company from 2014 to 2018 under the pledge of major shareholders.Finally,it is found that as the proportion of major shareholders’ equity pledge of Guirenniao company continues to rise,the company is faced with increasing financial risks,forced liquidation risks,abnormal stock price fluctuation risks and principal-agent problems.At the same time by using event study method,principal component analysis,value analysis method,the added value of economic law of these four methods for large shareholders equity pledge value are analyzed,and the Guirenniao company in both short-and long-term economic effect after the equity pledge,according to data from the financial statements of the internal and external all show that the value of the equity pledge harm the company.With the rapid development of social economy,increasingly frequent business transactions and increasing capital flow,it is inevitable that the economic behavior of pledge of major shareholders’ equity is not a unique "characteristic" of Guirenniao company.Therefore,this paper takes this opportunity to put forward some Suggestions to the pledgor,pledgee,minority shareholders and relevant regulatory departments of equity pledge,so that the economic activity of equity pledge can better serve the company under the control of the market.