Analysis On The Motivation Of Controlling Shareholder's Equity Pledge And Its Influence On Corporate Performance

After the global financial crisis,the economic momentum continues to decline,and it is a problem faced by the majority of listed companies to quickly and cost-effectively obtain the funds needed in the capital market.In this context,equity pledge financing,a novel financing method,has great development potential.More and more listed companies use this method of financing to use equity as a pledge,and the proportion of many companies that pledge equity to banks and other financial institutions has grown rapidly,turning non-liquid equity assets into High liquidity cash flow.Equity pledge financing not only provides a good channel for company financing,but also greatly improves the liquidity of company assets.However,there are two sides to this financing method of equity pledge.While providing convenient financing channels for listed companies,it also brings huge risks to the company.Many problems of the company will be exposed during the equity pledge process.Often in private listed companies,the shareholding structure is relatively concentrated.Due to this imbalance,the problem of principal-agent issues arises,and as the concentration of equity increases,the problem of agency becomes more prominent.Since the small and medium shareholders cannot participate in the actual business activities of the company,they can only enjoy the cash flow brought by the equity.The management of the company is entrusted to the controlling shareholder,which results in the separation of the two rights.When the controlling shareholder of the listed company uses the equity pledge financing method closely related to the equity,the control of the controlling shareholder of the company is separated from the cash flow right.The higher the proportion of equity pledge,the higher the degree of separation,which is likely to cause the controlling shareholder of the listed company to use Equity pledge to cash out.When the controlling shareholder is not for the purpose of helping the company,it will inevitably damage the company's interests,and will have a certain impact on the company's value,value creativity and operating performance.Therefore,when the main body of the equity pledge is the controlling shareholder,the motivation for the equity pledge is worthy of close attention,and at the same time,the impact of the pledge behavior on the company's performance should also be concerned.Based on the analysis of domestic and foreign literature and related theories,and through the analysis of typical cases,taking Oceanwide Holdings as the research object,this article conducts a detailed analysis from multiple angles,hoping to grasp the motives and controlling factors of the shareholder's equity pledge The impact of equity pledges on company performance.For the analysis of the motivation from the perspective of the company and the controlling shareholder,the motivation of equity pledge from the perspective of the company is mainly studied from two aspects of investment demand and corporate financing guarantee;the motivation of equity pledge of the controlling shareholder is analyzed from the two aspects of interest output and risk transfer.To study the economic consequences of the controlling shareholder's equity pledge,first use the value of Tobin Q to analyze the impact of equity pledge on the company's value as a whole;then use economic value added to analyze the impact of equity pledge on the company's value creativity;and finally use the relevant The financial indicators analyze the impact of equity pledge on the company's operations from an accounting perspective,focusing on its impact on the company's profit,debt service,operation and growth capabilities.The research found that frequent controlling shareholders and high equity pledge rate financing behavior will separate the controlling shareholder's control power from the cash flow right,and provide a channel for the controlling shareholder to export the company's benefits.Secondly,the high proportion of controlling shareholder's frequent equity pledge will bring the company Adverse consequences,reduce company value and company value creativity;at the same time,it also has a negative impact on the operating performance of listed companies.Finally,policy suggestions are given from the perspectives of internal governance and external supervision of the company,hoping to provide some useful supplements to the risk management and control of equity pledge financing in the capital market and the research on the internal governance of listed companies.