The Impact Of The Equity Pledge Of ~*ST Yin Yi On Corporate Value

In recent years,due to its advantages of flexibility,strong liquidity and low cost,equity pledge has become a key way for listed companies to obtain financing in the financing market.In this way,not only effectively strengthen the liquidity of funds,but also to solve the financing needs of many listed enterprises.Also because of this,however,the equity pledge is also increasingly prominent,the problems of the separation of control and cash flow rights(no change control,reduce the cash flow right),open the door for the interests of controlling shareholders encroach on the company,as a result,it is easy to lead to big shareholders hollowed company,great harm the interests of the company and the value.In addition,because the controlling shareholders have a high proportion of pledge and shareholding,listed companies will also have a series of risks to be liquidated,so that the enterprise also caused a huge loss.The research object of this paper,~*ST Yin Yi,is such an enterprise with a high pledge ratio.This ratio and operation method can easily lead to a series of risks and greatly reduce the value of the enterprise.In this regard,this paper adopts the case study method.Analyzed with the event research method,firstly introduced the general situation of ~*ST Yin Yi Company,the history of equity pledge by controlling shareholders,analyzed the motivation of controlling shareholders’ equity pledge,and introduced the relevant path of equity pledge affecting listed companies from both positive and negative aspects through a road map;Secondly,it studies and analyzes the financial situation of ~*ST Yin Yi enterprises and the relevant situation that equity pledge affects the enterprise value,etc.,and analyzes the negative reaction of the capital market to the typical equity pledge behavior of ~*ST Yin Yi through the event study method.Finally,according to the analysis results,it proposes solutions from three aspects:improving the equity pledge information disclosure mechanism,improving the corporate governance structure and internal organization settings,and external organizations jointly preventing the risk of pledge of controlling rights.