Analysis of the Relief Effect of Bailout Funds on Companies
with Pledged Equity: A Case Study of Keheng Co., Ltd.

Yang Liu; Li Ji*

doi:10.70711/memf.v3i1.8477

Analysis of the Relief Effect of Bailout Funds on Companies with Pledged Equity: A Case Study of Keheng Co., Ltd.

Yang Liu, Li Ji*

Abstract

This paper analyzes the relief effect of bailout funds on listed private enterprises facing risks from equity pledges, using Keheng
Co., Ltd. as a case study. The research finds that bailout funds, through methods such as equity transfer, provide short-term liquidity relief
and, in the long term, help companies divest loss-making businesses and refocus on core operations. This leads to financial recovery and operational improvement. The case demonstrates that market-oriented bailouts should adhere to targeted assistance and full-process supervision,
ultimately promoting corporate governance optimization and sustainable development.

Keywords

Equity pledge; Bailout fund; Corporate governance

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References

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Rev. Financ. Stud., 2019, 32(12): 4810-4854.

DOI: http://dx.doi.org/10.70711/memf.v3i1.8477

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