Case Analysis Of Equity Pledge Of GEM Listed Companies

With the continuous development of China's economy,equity pledge has developed rapidly in China's capital market due to its characteristics of easy realization and high circulation.In China's main board,gem,small and medium-sized board,the new third board market,the scale of equity pledge continues to rise.Among them,the stock pledge of gem market is particularly obvious: on the one hand,gem listed companies themselves have financing shortboard;On the other hand,equity pledge satisfies the financing needs of gem listed companies with its various advantages.However,with the rapid expansion of equity pledge,the risks and problems of controlling shareholders' equity pledge of listed companies are gradually exposed.The excessive pledge of equity by the controlling shareholders of listed companies has caused a series of consequences,such as the break of capital chain,the emergence of financial crisis,the infringement of the interests of minority shareholders and the deterioration of the overall operating environment.The listed companies are busy with financing through equity pledge,but they ignore the irreversible impact of excessive equity pledge on the company.Therefore,this paper selects gem listed companies to study their controlling shareholders' equity pledge,which has a strong practical significance.From the perspective of the rapidly developing Internet video industry,this paper selected LS company with the most obvious performance of equity pledge financing in this industry,and studied the risks brought by the equity pledge behavior of its controlling shareholders.First,this paper analyzes the background of equity pledge,and analyzes the theoretical research content of equity pledge in detail from the perspectives of control right and cash flow right,equity pledge risk and equity pledge risk control.Second,this paper analyzes the specific situation of LS company in detail,and divides the pledge of LS company's equity into three stages: initial stage,middle stage and later stage.Thirdly,this paper mainly USES case analysis method to analyze the motivation,influencing factors,risks and problems of LS company's equity pledge.Fourth,as for the excessive equity pledge of the controllingshareholder of LS company,this paper analyzes the consequences,and proposes a series of suggested measures such as strengthening the supervision of the controlling shareholder's rights and power,reasonably controlling the proportion of corporate pledge,restraining excessive earnings management,and improving relevant laws and laws.It is hoped that the listed company can take this as an example to control the risk of equity pledge and make equity pledge reasonably.