Research On The Influence Of Stock Pledge Risk Contagion On The Financial Situation Of A Company

With the improvement and development of China's capital market,new ways of corporate financing have been emerging in the market,and stock pledge financing has gradually become the best choice among these ways of financing,which is the choice of controlling shareholders of many listed companies.Although China's capital market is constantly improving,at present,it is still in its infancy,and the laws and regulations matching the market are not perfect and mature enough,which also brings greater external risks to the stock pledge financing.At the same time,a large number of listed companies' stock pledge positions burst after 2017.A large number of stock explosion undoubtedly has a significant adverse impact on listed companies and controlling shareholders,but it also wakes up the market.What we should know more is that the exposed exposure is not the biggest crisis,and the crisis will always come from the unknown.Therefore,we should pay more attention to the enterprises that have not exposed the crisis after the pledge of controlling shareholders' equity.At the same time,we should carefully study and analyze the problems and risks in the whole process of pledge.After the pledge,the controlling shareholders will face a series of operational and financial problems,including the transfer of control rights and the increase of personal financial risks.At present,China's enterprise system is still imperfect,in the listed companies,the controlling shareholders have absolute control.When the listed company is unprofitable or the controlling shareholder's own financial situation has problems,it is likely to make behaviors that will damage the interests of the listed company and the majority of investors through its own control right.For example,radical investment,hollowing out listed companies,etc.These behaviors will undoubtedly seriously affect the normal production and operation of the company,and cause adverse consequences for the sustainable development of the company.This paper selects ~*ST yinji as the case study object,based on the control right theory,risk management theory and the separation of two rights theory.The research analyzes that the investment preference of the listed company will change after the controlling shareholders pledge their shares,and the financial situation of the company will start to deteriorate.Moreover,the controlling shareholders will take a series of financial actions to increase the financial risk of the company based on their own interests.These actions,both at the company level and at the shareholder level,are likely to cause the financial crisis of the company.Based on the analysis of the above phenomena,this paper will focus on whether the financial behavior of the controlling shareholders of the company changes after their own equity pledge,and if so,what will happen.Through the analysis of the case company,after the controlling shareholder's equity pledge,the listed company appears the over investment behavior,and the related behavior also appears the substantial increase compared with before the pledge.After the high proportion pledge,the controlling shareholder even appears the occupation of non operating funds.At the same time,this paper studies the financial situation of the company through the financial analysis method.It is found that after the stock pledge,the controlling shareholders will have a series of more radical financial behaviors,which increase their own interests and weaken or even damage the interests of listed companies and investors,and affect the financial situation and increase financial risks of the company.At the end of the paper,the author puts forward some suggestions on how to weaken the phenomenon that the financial risk increases and the financial situation deteriorates after the pledge of controlling shareholders' equity.