Analysis of the Impact of LeTVs Big Shareholders' Stock Pledge on Business Performance

摘要

Private listed companies have higher credit requirements than state-owned enterprises, and financing is more difficult. In order to alleviate these financing difficulties, equity pledges have emerged. Equity pledge has won the favor of many corporate shareholders because it is simple and flexible, and it helps maintain control. However, the behavior of equity pledges tends to cause the separation of control rights and cash flow rights, triggering agent conflicts and negatively affecting business performance. It also easily leads to corporate earnings management and manipulation of profits. Then, how does the shareholder's equity pledge affect the company's operating performance? Recently, LeTV's financial crisis has been hot. This article through LeTV's specific case, to build a business performance evaluation model, to explore LeTV's frequent equity pledge behavior on its business performance, and to get some inspiration.