Research On Equity Pledge Of Major Shareholders Of HBMG Company

With the strengthening trend of economic globalization,China's capital market is also constantly developing and improving.In recent years,as a new financing method,equity pledge with convenient procedures and low financing cost has been favored by shareholders of listed companies.Reasonable and standardized play to the positive role of equity pledge can raise funds for the company's own business development and help optimize the allocation of social resources.But at the same time,because of the influence of the company's operating condition and stock price fluctuation,the pledged stock has the risk of being forced to liquidate by the pledgee because of the falling stock price,which leads to the transfer of the company's actual control rights.Moreover,because the pledge of shares aggravates the separation between control rights and cash flow rights,controlling shareholders may have the action of harming the interests of small and medium shareholders and changing the company's investment strategy.Therefore,a rational and comprehensive analysis of the economic consequences of equity pledges of listed companies in the film and television industry can provide reasonable reference information for investment decisions of various stakeholders,and it is also of great significance to improve people's cultural literacy and promote the development of the national economy.Firstly,this paper clarifies the research background,research significance and research methods,and reviews the relevant literature of equity pledge at home and abroad.Secondly,it defines the related concepts of this paper and introduces the theoretical basis of this paper.Supported by the theory of control rights,information asymmetry,and principal-agent theory,the paper selects the equity pledge event of the controlling shareholder of HBMG company to analyze the problems existing in the process of its motivation pledge.By using Z-score model,four-capacity framework,Tobin's Q value and other financial index analysis methods,from the four perspectives of equity pledge announcements,a comprehensive analysis of the economic consequences of major shareholder's equity pledge behavior is performed to verify the large shareholder's high proportion of equity whether the pledge will affect the degree of separation between the company's control and cash flow rights,the company's financial risk,company performance,and company value.This paper holds that the problems existing in the process of equity pledge of the controlling shareholders of HBMG company are the excessive frequency and proportion of the pledge,the unclear disclosure of the purpose of the pledge funds,and the encroaches on the interests of minority shareholders.The results show that the high frequency and high proportion of stock pledge by the controlling shareholders of HBMG will aggravate the separation of corporate control and cash flow right,increase the financial risk of the company,affect the performance of the company and reduce the value of the company.Finally,this paper focuses on the problems existing in the equity pledge process of HBMG company's controlling shareholders as analyzed above,puts forward policy suggestions on internal governance and external market supervision,hoping to give some enlightenment to controlling shareholders' equity pledge behavior in China's capital market,so as to promote the healthydevelopment of China's capital market and listed companies.