Case Study Of Equity Pledge Of Controlling Shareholder Of Taihai Co.,Ltd.

Equity pledge transforms "static" equity into "active" liquidity,increases the company’s financing channels,and is favored by more and more controlling shareholders due to its convenient operation,simple transaction procedures and fewer restrictive conditions.Since the Shanghai and Shenzhen stock exchanges launched the stock pledge business in 2013,the controlling shareholders of listed companies have realized increasingly frequent financing through stock pledge on the exchange and participated in an increasing number of subjects.With the increasing scale of the business and the increasing proportion of the participation of the target,the risk events of equity pledge become more and more obvious.Just as there are two sides of the same coin,equity pledge not only broadens financing channels and brings convenience,but also inevitably has many problems.Therefore,we should pay attention to equity pledge of controlling shareholder.Using the research method of combining theory and case,firstly,introduce the background and significance of equity pledge,analyze the research results of domestic and foreign scholars are sorted out from motivation and economic consequences of equity pledge;secondly,expound and analyze the theories related to t equity pledge;thirdly,analyze the characteristics,motives and economic consequences of equity pledge of controlling shareholder of Taihai co.LTD;finally,draw the research conclusions,throw out a suggestions from the perspectives of law,corporate internal governance and stakeholder investment.In order to obtain financing funds,avoid the restriction of share sales and transfer risks,the controlling shareholders of Taihai co.LTD frequently pledge the equity.Finally,reach the state of high proportion pledge.the equity pledge crisis continues to ferment,which leads to the economic consequences of increasingly serious agency problems of listed companies,damaging the interests of minority shareholders and the controlling shareholders facing the risk of transferring the right of control,and has a negative impact on listedcompanies.Relevant parties should pay more attention to the financial behavior of equity pledge of controlling shareholders,the regulatory authorities should improve the relevant laws and regulations on equity pledge,the listed companies should strengthen the internal governance capacity building,and the stakeholders should focus on the risks brought by equity pledge.