| Pledge of equity refers to a financial activity in which the equity owner uses the equity he owns as a guarantee to obtain funds from financial institutions.The openness and flexibility of equity makes financial institutions willing to provide shareholders with the capital they need.In recent years,stock pledge frequently occurs in the capital market,especially controlling shareholder have frequent activities.On the one hand,equity pledge can exert a positive impact on controlling shareholders' efforts to improve the company's performance so as to enhance the company's value.On the other hand,this financing method will also send signals to the outside world that controlling shareholders are short of funds and the listed company's financial deterioration,which will also increase the risk of control right relinquishing and increase the possibility of controlling shareholders' use of equity pledge for benefit transmission.Finally,agency problems will be caused and negative impact will be finally brought to the company's value.This article selects Guirenniao Co.,Ltd.as an example,using the case method with noble bird company controlling shareholder frequent high proportion of equity pledge for financing as the breakthrough point,firstly it introduces Guirenniao Co.,Ltd.controlling shareholder equity pledge history and the status quo,then the behavior motive are analysised,the largest shareholder by short-term market reaction to the noble bird company,the company's financial situation,and analyze the value of the company to verify the controlling shareholder of high proportion and frequently equity pledge will affect the value of the listed company how? Finally,based on the change of company performance and value and corporate governance,the fundamental problems of equity pledge are found,and corresponding countermeasures are proposed.The study found that: first,controlling shareholders tend to put their own interests on the first place when they pledge their shares,which will accelerate the deterioration of the financial situation of the enterprise;Second,the controlling shareholder's equity pledge itself will transport negative influence to the world,when the controlling shareholder will pledge funds for their own use,the effect will be more serious,so,when we calculated the company accumulated excess yields can be found that the negative influence on the value of the company and its sustainability impact.Through the analysis of this article,in view of the high and frequent pledge of equity peformation of Guirenniao Co.,Ltd.controlling shareholders,we can take some inhibitory Suggestions: first,we should improve the internal governance from establishing a reasonable equity structure,strengthening the reasonable distribution of power between the controlling shareholders and minority shareholders and increasing the supervision and other defence Suggestions;Secondly,certain restrictions are imposed on the behavior of controlling shareholders' pledge of equity,including specifying the frequency and proportion of pledge of equity,restricting the voting right of controlling shareholders after pledge of equity,and levying income tax on the income from pledge of controlling shareholders' equity.Third,it also should improve the transparency of stock pledge information disclosure,while strengthening the integrity of stock pledge information disclosure,standardize the stock pledge disclosure mode and require that the stock pledge information should be disclosed in detail in the annual report announcement.Finally,some Suggestions on improving relevant laws and regulations of equity pledge are put forward,which will play a positive role in the healthy and steady development of China's capital market. |
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