Study On The Influence Of Equity Pledge Of Sansheng Shares On Company Performance

The convenient and easy access to funds of equity pledges makes major shareholders tend to use equity pledges for financing.However,the wanton equity pledge of major shareholders for personal purposes is prone to encroachment motives,at the same time,considering that major shareholders play a vital role in the company’s development and operation decision-making,in order to prevent their excessive use of equity pledges and adverse effects on the company,it is necessary to strengthen attention and research on the equity pledges of major shareholders,so as to find out as soon as possible and avoid the negative impact of the equity pledges of major shareholders on the company’s performance as soon as possible.This paper takes the equity pledge of the major shareholders of Sansheng Shares as the research object,and conducts a comprehensive and in-depth analysis of the impact of its pledge behavior on the company’s performance.First of all,through the combing of the literature and theory of the equity pledge of major shareholders,combined with the investigation and research of the company’s development status,equity structure,pledge status,etc.,it is concluded that the equity pledge of the company’s major shareholders has the characteristics of frequent pledges,high pledge rates,and incomplete circular pledge and disclosure announcements;second,the use of financial data to analyze the motivation of the major shareholders’ equity pledge from the level of the company and the major shareholders;third,the use of event research method,Tobin Q method,factor research method,etc.to respond to the company’s long-term and short-term market,company value,The financial and non-financial impacts are explored in depth,and the equity pledge behavior of the major shareholders of Sansheng Shares is studied and verified what kind of impact will be brought to the company’s performance;finally,through the above analysis,the research conclusions of this paper are summarized and the reference for companies that use equity pledge financing is provided.Through a detailed and in-depth analysis of the equity pledge of the major shareholders of Sansheng Shares,the results show that: first,for enterprises with financing needs,the equity pledge of major shareholders helps to alleviate the pressure on the company’s funds;second,there is a certain positive correlation between the equity pledge rate and the motive of the interests of the major shareholders;third,the excessive equity pledge rate of the major shareholders may send negative signals to stakeholders that the business operation is not in good shape,which is not conducive to the long-term development of the company,thereby negatively affecting the company’s performance.Based on the above conclusions and the actual situation of the enterprise,the author further strengthens the supervision of the equity pledge of the major shareholder from the aspects of financing methods,internal management,and supervision of the equity pledge of the major shareholder,with the aim of avoiding the excessive use of the equity pledge by the major shareholder and adversely affecting the company’s performance.