The Impact Of Controlling Shareholder Equity Pledge On Enterprise R&D Investment And Output

Since the Shanghai and Shenzhen exchanges carried out the progressive activities of stock pledged repo in 2013,the number of listed companies and the proportion of pledges that are pledged on and off the market have been rising every year.It can be seen that listed companies conduct equity pledges.Financing has become more and more common.Under the general trend of social and economic development,corporate innovation is increasingly playing a role in promoting the long-term development of enterprises and enhancing their core competitiveness.Enterprises face the challenge of maintaining competitiveness and continuous innovation in the ever-evolving capital market.Although corporate innovation investment plays a key role in business development,the core factor for innovation success depends on the main body of innovation.The controlling shareholder not only acts as the controller of the enterprise,but also the leader of the enterprise's business investment strategy formulation and R&D capital investment.It can influence the management's major business decisions,and it has great research and development activities for enterprises that can coexist risks and benefits.Decide on the role.Therefore,this paper attempts to verify whether the controlling shareholder has an impact on the R&D investment and output of the enterprise from the perspective of the controlling shareholder's behavior,ie equity pledge.Based on the theme of equity pledge and enterprise innovation,this paper summarizes the research related to the theme and summarizes the research results of domestic and foreign scholars,which is the theoretical basis of the thesis.From the perspective of controlling shareholders,this paper selects Huachangda as a case study company,applies the theory to the case,and passes the equity pledge behavior of Huachangda controlling shareholder and the company's R&D investment and R&D output in 2011-2017.A related comparison is made to explain the impact of equity pledge behavior of Huachangda's controlling shareholders on the R&D investment and output of enterprises.At the same time,a comparative analysis was conducted between enterprises in the same industry and Huachangda Company but the controlling shareholder did not conduct equity pledge,and the impact of the equity pledge behavior of Huachangda's controlling shareholders on the R&D investment and output of the company was strengthened.Finally,the research results are discussed and analyzed,and targeted recommendations are proposed from the internaland external levels of the company.Through a case study of Huachangda Company,this paper discusses the impact of controlling shareholder pledge on corporate R&D investment and R&D output.The research in this paper finds that the controlling shareholder's equity pledge behavior will lead to the reduction of R&D investment and output,and the lower the pledge ratio of the controlling shareholder,the lower the R&D investment and output of the enterprise.