Influence Of Equity Pledge Of Huayi Electric On Financial Performance

China has transitioned from a period of rapid expansion to a period of high-quality development.In such scenarios,it’s vital to know that,China’s enterprises not only need to pursue high interests,but also to overcome technical problems.As a technology-intensive industry,it plays a unique role in increasing people’s quality of life.At present,the scale of business is increasing year by year,but facing a high share,technology in general,which is in urgent need of transformation and upgrading.Studying the industry’s financial performance will contribute to helping the industry respond to high-quality development policies,modestly.This paper first helps to distinguish between regional and abroad research paradigms on shares pledge,internal control,and financial performance,then investigates the impact of internal control on the interaction in both equity pledge and financial performance,and ultimately studies the role of internal control upon that interaction for both shares pledge and financial performance.Using industry data from2010 to 2019,the A-share electrical equipment and machinery 263 listed businesses in the construction sector in Shanghai and Shenzhen were investigated by case analysis.In this paper,the data of Huayi Electric from 2010 to 2019 are compared vertically with the average value of the same industry and horizontally with Hengtong Optoel-ectronics,a listed company in the same industry,the analysis show that:first,equity pledge is significantly negatively correlated with financial performance in the electrical machinery and equipment manufacturing industry.Second,internal control plays a negative regulatory role in the impact of equity pledge on financial results.And based on the actual situation,it puts forward suggestions that relevant departments need to improve the laws and regulations related to equity pledge,enterprises should improve the supervision mechanism,follow with interest about the construction of internal environment,strengthen information and communication,show solicitude for risk assessment,clarify responsibilities and strengthen control,so as to give full play to the positive financing effect of equity pledge and promote the improvement of financial performance.