RESEARCH ON THE CURRENT SITUATION, MOTIVATION, AND ECONOMIC CONSEQUENCES OF EQUITY PLEDGE IN LUXSHARE PRECISION INDUSTRY

Li Nanxi, Bi Xinyu, Xie Juanhong, Wu Mali

Abstract


This article takes Luxshare Precision Industry Co., LTD (referred to as Luxshare Precision) as an example to analyze the current situation, motives, and economic consequences of its equity pledge. The study found that Luxshare Precision has mainly undergone six equity pledges after its listing. The main reasons for Luxshare Precision's equity pledge include rapid expansion of the company, high financing efficiency of equity pledge, and maintenance of controlling shareholder control. Although equity pledge meets the company's financing needs, it can also trigger financial risks for the company and have a negative impact on the stock price.

Keywords: Equity pledge, controlling shareholder, risk prevention


Full Text:

PDF

Refbacks

  • There are currently no refbacks.


This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0), permitting copy and redistribute the material in any medium or format.