The Impact Of The Equity Pledge Of ~*ST Guiren’s Controlling Shareholder On Corporate Risk And Performance

Equity pledge is a financing behavior characterized by its power,symbolism,circulation and convenience,and the risk of pledge value.When enterprises are faced with financing difficulties,it is undoubtedly not a convenient method,so it is favored by a large number of capital demanders including controlling shareholders of listed companies.However,when the scale of equity pledge in the A-share market continues to expand and the frequency of pledge gradually increases,although equity pledge financing relieves the financial pressure to a certain extent,it also leads to an increase in liquidation events year by year,and the risks involved in equity pledge gradually break out.On the one hand,it increases the possibility of controlling shareholders using equity pledge to transfer benefits,which leads to agency problems.On the one hand,it also has an indirect impact on enterprise performance,and also has a greater impact on the entire capital market.Therefore,by studying the case of controlling shareholder’s equity pledge,analyzing the impact of equity pledge on enterprise’s risk and performance,and putting forward corresponding suggestions from different angles,it is of great significance for enterprises with similar situations to carry out equity pledge reasonably and develop healthily.In this paper,~*ST noble company,which has a high pledge ratio in the clothing and textile industry of A-share market and ranks in the forefront for several years,is taken as the case study object.Up to now,the cumulative number of pledged shares in this company accounts for 76.22% of the total share capital,and the pledge times are even as high as more than 30 times.Specifically,firstly,it clarifies its pledge motivation,secondly,it analyzes the risks that pledge banks bring to enterprises,and then explores the impact on performance.Specifically,the main risks analyzed include financial risks,control rights transfer risks,etc.Then,event research method is used to evaluate the short-term performance impact on noble birds after the equity pledge event,financial index method is used to analyze the changing trend of noble birds’ financial data after pledge,and EVA research method is used to analyze whether the economic value-added of enterprises increases before and after pledge.Finally,combining the risk and performance evaluation results with the current economic situation and industry situation,summing up the experience of this case analysis and giving some enlightenment to enterprises with the same pledge problem,reasonably controlling the equity pledge risk,making it have more positive impact on performance,protecting the interests of small and medium shareholders,and avoiding unnecessary losses.