Research On The Relationship Between The Controlling Shareholder's Equity Pledge,r&d Investment And Corporate Value

Since 2013,the emerging financing method of equity pledge has developed and spread rapidly in China's financial market.And most of them are from the hands of controlling shareholders.Although the controlling shareholder's equity pledge is its own financing behavior,it is worthy of attention because the special nature of the controlling shareholder will have a significant impact on the listed company.The controlling shareholder's equity pledge has advantages and disadvantages.On the one hand,it may ease financing constraints and introduce external governance,which is good for development of the enterprise;on the other hand,it may also encourage the controlling shareholder to manage earnings,manipulate company decisions,and encroach on the company's interests,thereby damaging the value of the company.Increasing corporate value is the ultimate goal of business operation and development.Any factor that affects corporate value is very important.Therefore,it is of practical significance to study the impact of controlling shareholder pledge on corporate value.The key reason why the controlling shareholder's equity pledge affects the value of the listed company is the controlling shareholder's controlling position in the listed company.From the perspective of controlling shareholders,the equity pledge will bring control transfer risk and leverage risk to the controlling shareholder.After the equity pledge,its behavioral motives and risk tolerance will undergo major changes,and the controlling shareholder will try to avoid large-value,high-risk investment activities.R&D investment is a discretionary investment activity with large amount and high risk.The controlling shareholder not only has the motivation to reduce R&D investment,but also has the ability to implement it.Using this real surplus management method to improve the performance of the current period,but it violates the goal of maximizing corporate value.Nowadays,innovation is the first driving force for development.R&D investment is the pre-investment of innovation,and investment in R&D expenditure of listed companies is on the rise.For listed companies that have R&D investment,especially have high R&D investment,it is necessary to explore whether R&D investment plays a role in the relationship between controlling shareholder pledge and corporate value.Studying the relationship between controlling shareholders' equity pledge,R&D investment and corporate value not only helps to clarify the relationship between equity pledge and corporate value,but also helps to provide new experience for financial market to deal with controlling shareholders' equity pledge.This paper sorts out relevant literatures at home and abroad,and based on relevant theories such as principal-agent.Taking the data of 755 A-share listed companies in 2013-2017 as a research sample,empirically study the relationship between controlling shareholder pledge,R&D investment and corporate value.The research results show that:(1)The controlling shareholder's equity pledge adversely affects the value of the enterprise.(2)The controlling shareholder's equity pledge adversely affects R&D investment.(3)R&D investment plays a part of intermediary role in the process of controlling shareholders' equity pledge's impact on the value of enterprises.(4)Divide the research samples into high R&D investment groups and low R&D investment groups according to the intensity of R&D investment.High R&D investment groups can draw consistent conclusions.However,the negative impact of the controlling shareholder's equity pledge on the R&D investment in the low R&D investment group is not significant.Finally,this paper puts forward some suggestions in combination with the research conclusions,in order to provide reference for listed companies,investors and relevant departments.