Research On Financial Risk Evaluation And Prevention Of Huayi Brothers Company From The Perspective Of Equity Pledge

In recent years,equity pledge transactions have become a common financing method used by listed companies.As the number of equity pledges continues to increase,the pledge rate is also increasing year by year,and more and more people are beginning to pay attention to the impact of equity pledges on company value.In this context,it is of great significance to study the relationship between equity pledge and company value.At present,the development of my country’s equity pledge financing market is still immature,and the relevant laws and regulations are not perfect.This financing method brings many potential risks to listed companies.The most intuitive manifestation is that after 2017,the equity pledges of many listed companies exploded,which sounded the alarm to the market.However,as far as the market is concerned,listed companies that have not yet revealed the crisis after the controlling shareholder’s equity pledge is the main part.After the controlling shareholder pledges a high proportion of equity,it will lead to the risk of control transfer and increase the risk of personal financial leverage.However,the shareholding structure of listed companies in my country often gives the controlling shareholder an absolute right to speak.If the controlling shareholder implements a series of unreasonable financial behaviors through corporate governance,it will directly increase the financial risk of the listed company,which in turn will affect the follow-up sustainability of the listed company.develop.In view of the current research,scholars rarely evaluate the financial risk of listed companies based on the perspective of equity pledge.The financial risk of listed companies will determine whether the company can continue to operate in the future.The impact of pledge behavior on the company’s financial risk is meaningful.This paper takes Huayi Brothers Media Co.,Ltd.(hereinafter referred to as Huayi Brothers)as a case company,based on the theories such as principal-agent and information asymmetry,and analyzes the impact on the overall financial behavior of the company after the controlling shareholder pledges its equity in order to protect its own interests.This behavior will increase the financial risk of listed companies,which will lead to financial crisis.The financial risk of Huayi Brothers is analyzed using a single financial indicator and a multivariate model Z-score model.First,a single financial indicator is used for longitudinal analysis,and the average value of the same industry is selected for comparative research to find out the financial risks existing in Huayi Brothers’ internal links,and then the multivariate model Z-score model is used to measure Huayi Brothers financial risks.The two methods complement and corroborate each other,and explore the causes of financial risk through case studies and comparative analysis.Finally,it is concluded that the controlling shareholder’s equity pledge will lead to an increase in the financial risk of listed companies.Finally,the corresponding financial risk prevention suggestions are put forward to solve the possible financial risks caused by the controlling shareholder’s equity pledge.