Research On The Impact Of The Pledge Of The Company’s Controlling Shareholders On Financial Risks And Countermeasures

Under the current background of financial deleveraging,Equity pledges can often be used for corporate financing.But there are also downsides,which ultimately manifests itself in higher financial risks.However,the current market development is not complete,the corresponding laws for equity pledges are not yet complete,and companies with high equity pledge ratios frequently explode,and the market has a huge response.However,more attention should be paid to companies that have not yet experienced an obvious financial crisis but have been in a high proportion of pledged equity for a long time.If the controlling shareholder’s pledge of equity is indeed prone to unreasonable behaviors that adversely interferes with the economic situation of enterprises and the implementation of their strategies then these things will also affect the company’s financial risk level and,from a market perspective,will also cause market turbulence.There are few researches on the combination of equity pledge and financial risk,but financial risk is very important to the company’s business development and directly determines whether the company can achieve sustainable development.Therefore,it is extremely necessary for the controlling shareholder to pledge the company’s financial risks.Easysite is the research object of this paper.With information asymmetry,signal transmission and other knowledge as the support,this article discusses the changes in the company’s strategic decisions company shareholders pledge wealth after the study of this behavior on the company’s later financial risks.Impact,analysis shows that the controlling shareholder made aggressive actions due to the excessively high equity pledge ratio,such as over-investment,blindly“high-sending and transferring”cash out,etc.,which aggravated the company’s financial risk and plunged the company into a financial crisis.The article analyzes the company’s financial risks based on this type of behavior,With the financial evaluation criteria and object situation as the result,: the controlling shareholder’s equity pledge after the decision is radical and easy to expand the company’s financial risk;The more equity the owner pledges,the greater the financial risk: The company should payattention to the fact that controlling shareholders seek profits at the expense of other stakeholders of the company.Finally,because the equity pledge risk is not enough to be prevented by the company itself,this article puts forward policy recommendations on the risks caused by equity pledge,Reduce the influence of these measures on financial results.