Research On Financing Methods Of Stock Pledge Of Listed Companies

Since the reform and opening up,with the rapid development of China's capital market,the financing methods of listed companies have become more and more diversified.Due to its own convenience,equity pledge financing has played a significant role in alleviating the financing difficulties of listed companies,especially private companies,and attracted a large number of controlling shareholders to adopt this financing method.As the main body of stock pledge of listed companies,the controlling shareholder deserves the attention of investors in the market.Since the second half of 2018,the equity pledge crisis has flooded the capital market,and the sound of companies being forced to close their positions has been constantly heard,which has brought an impact on the company's stock price and the entire capital market.Therefore,it is more necessary for us to comprehensively understand the equity pledge financing business and study the impact of the controlling shareholders' equity pledge on the company.This Paper selects Guirenniao co.,Ltd.for research object,on the basis of literature review at home and abroad,with case analysis and event study method,study of controlling shareholders equity pledge.The main content is as follows: first,introduce the company ownership structure and the controlling shareholder equity pledge statistical detail;secondly,it collects the public information of the company,processes relevant data and analyzes the motivation of the pledge of the controlling shareholder's equity from several aspects;then,further study of the controlling shareholder equity pledge of control and cash flow right separation degree,medium and small shareholders and creditors,and pledge the company's business performance and the influence of the value of the company.The results showed that:(1)the motivation of the company controlling shareholder equity pledge is to meet the financing needs,maintain control to realize controlling purpose as well as the associated company guarantee;(2)the high proportion of equity pledge will aggravate the separation of control right and cash flow right of the controlling shareholder;(3)the stock pledge of the controlling shareholder of company continues to ferment,resulting in the deterioration of the company's internal financial operating conditions;(4)the stock pledge of company will have a negative impact on the share price of the listed company in a short time;(5)the high proportion of equity pledge has a negative impact on the value of the company.Finally,on this basis,the paper puts forward relevant policy Suggestions to provide decision-making reference for the relevant functional departments:(1)the regulatory body should strictly require the listed company's equity pledge information disclosure quality,and improve the implementation rules of the equity pledge policy system;(2)listed companies should avoid the "one dominant" type of shareholding structure,can strengthen the external supervision of the market to fully consider the interests of minority shareholders;(3)the controlling shareholder shall disclose the specific use and final direction of the pledged funds in as much detail as possible when making the announcement of the pledge of equity;(4)financial institutions and other pledgees must fully understand the risks behind the equity pledge business,do a good job in advance of the business qualification investigation,and do a good job after the controlling shareholder financing purposes and related behavior supervision;(5)before investing,the minority shareholders should fully understand the company's financial statement information,and always pay attention to the controlling shareholders' financing behavior and pledge dynamics,if necessary,they can reduce their losses by timely selling stocks..