Empirical Research On The Impact Of Venture Capital On Large Shareholder's Equity Pledge In NEEQ

In recent years,multi-level capital market is more and more popular.In the construction of multi-level capital market,an increasing number of scholar pay attention to the improvement and reform of system in NEEQ.The start-up enterprises in NEEQ often have the following features:small size,low profitability and imperfect governance structure.This kind of enterprises need to broaden financing channels to solve the problem of lacking funds urgently.While venture capitalists,who are committed to finding the start-up enterprises with potential competitiveness,play an important role in helping the enterprises to improve their business performance,improve their corporate governance,ease their financing difficulties and promote their growth,so as to gain the high return.However,even if venture capitalists give the great financial support to the enterprises,the financing problem is still the most important problems in NEEQ need to solve.Equity pledge is a new way of financing,which is widely used by large shareholders because of its convenience.There are different opinions about the impact of equity pledge on enterprises.Some scholars think that equity pledge just reflects shareholders' personal wishes and equity pledge is a manifestation of tunneling enterprises.But the data of equity pledge in NEEQ we collect show that most of the purpose of large stockholders' equity pledge is to raise funds for enterprises.Therefore,large shareholders are closely related to enterprises in NEEQ.They are willing to use their own shares to guarantee the financing of the enterprises.To sum up,the equity pledge of large shareholders not only helps enterprises to alleviate capital pressure,but also does not need enterprises to undertake financing risks.Then,what effect does venture capitalists have on the equity pledge of large shareholders in NEEQ?We think that venture capitalist will support the pledge of large shareholders.This paper takes the enterprises in NEEQ as the research object,aims to discuss the following questions:1.What is the role and effect of venture capital in the equity pledge of large shareholder?2.Does the characteristics of venture capital affect the degree of the influence of venture capital on the large shareholder's equity pledge?This paper is a preliminary study on the venture capital and the equity pledge of large shareholder in NEEQ,which has theoretical and practical significance.There are few literatures on the venture capital in China.On the value of academic research,this paper studies the effect of venture capital on the shareholder' s equity pledge.It enriches the research of the venture capital in NEEQ and also provide a new perspective for the motivation of equity pledge.On the value of practical research,for the enterprises in NEEQ,this paper explores whether the equity pledge of large shareholder is beneficial to the enterprises and whether the venture capital has influence on the equity pledge of large shareholder,so as to provide references for the enterprise management.