| In recent years,equity pledge,as a new form of financing,has been frequently adopted by shareholders of listed companies due to its low threshold and high convenience.The emergence of equity pledge has effectively alleviated the financing difficulties of domestic listed companies in the current market environment.However,at the same time,in China,due to the risks of equity pledge,the company’s equity has been frozen,liquidated,and even the company’s equity changes are common.Therefore,the risk of equity pledge cannot be ignored.Arbitrary use may bring huge disasters to investors and even the entire market,while also increasing the risks faced by the company’s operation.The default risk and control transfer risk that exist in it,if not properly prevented,will seriously affect the healthy development of the company.In private listed companies,equity pledge financing by controlling shareholders is more common.The high proportion of major shareholders’ shareholding increases the risk of stock price decline,and also brings the risk of control transfer to private enterprises,thereby having a significant impact on the company’s operations.This article selects Jinke Co.,Ltd.,which is listed on the A-share market,as the research object.Firstly,it explains the relevant definitions of equity pledge and major shareholders,and introduces domestic and foreign research conclusions to elaborate on equity pledge.Then,through practical cases,it analyzes the motives of equity pledge and the impact of its consequences on the company’s value.Finally,suggestions were obtained for reasonable equity pledge financing methods.This study found that:(1)With the continuous development of enterprises,the demand for funds is increasing,which is also the main motivation for controlling shareholders to pledge their equity;(2)Taking the pledge of property as a guarantee,shareholders will not lose control of the company,while equity pledge is based on the pledge of property.Therefore,maintaining shareholders’ control is also an important reason;(3)Controlling shareholders may adopt equity pledge to achieve profit appropriation in order to transfer their own risks;(4)The equity pledge of controlling shareholders can cause short selling of listed companies in the market,leading to a significant drop in the stock price of listed companies in the short term,while in the long term,it will further reduce the market value of listed companiesThe research results of this article can improve the theory of the relationship between controlling shareholder equity pledge and company value,and help alleviate the adverse effects of equity pledge on listed companies.It also helps to solve the problems in controlling shareholder equity pledge,thereby helping companies better utilize this financing method and avoid the risks brought by equity pledge. |
