Major Shareholder Equity Pledge, External Governance Environment And Corporate Innovation Investment

In recent years,the capital market situation has been sluggish.Many enterprises have encountered some bottlenecks in their development and encountered difficulties in investment and financing.However,in the face of bank borrowing restrictions,limited borrowings,high corporate lending rates,and heavy interest burdens,many companies cannot effectively solve financing problems through bank loans.As a result,shareholders of many companies have begun to try equity pledges to raise funds.In particular,the Shanghai and Shenzhen exchanges have passed the equity pledge repurchase.Since the launch of the activity,the number of companies that pledged equity and the proportion of pledges have increased year by year.Many shareholders have used equity pledge as the preferred method to solve their financial flow difficulties.Under the great tide of economic development,innovation is not only an important driving force for the long-term stable growth of a country's economy,but also an important means for the long-term development of enterprises and the dominant position of the market.The state has policy inclinations in this regard,vigorously supports the development of innovative industries,and increases financial subsidies.In this atmosphere,how to motivate companies to continue to carry out innovative activities has become an enduring research topic.Due to the fact that there is a big problem in the listed companies in China,the major shareholder is the planner of the enterprise's economic development.The majority shareholder maintains the status of his own controller by selecting the management that represents his own interests.Therefore,the company's business decision-making and development philosophy often represent the will of the major shareholder.The success of the company's innovation activities depends largely on the attitude of the major shareholders.This paper attempts to verify whether the major shareholder has an impact on the innovation investment of the enterprise from the micro-individual behavior of the large shareholder equity pledge.This paper first expounds the research background related to equity pledge and enterprise innovation investment and the research significance of this research activity,and gives a brief description of the research methods and research ideas.Secondly,it studies the economic consequences of equity pledge,major shareholders and Research on related aspects of enterprise innovation and research results of external governance environment and enterprise micro-behavior;then,in the case of brief description of previous scholars' relevant research results,the theoretical basis of the article is clarified according to the research topic of this paper;then based on theoretical basis and related logic Reasoning and related research put forward the hypothesis of this paper;after the hypothesis of the article is put forward,the empirical test is carried out.Specifically,the variable selection and data source of the study,the research model is listed according to the hypothesis,and then the descriptive statistics are used to understand the distribution characteristics of each variable,and the Pearson correlation analysis is used to briefly explain the relationship between the interpreted variable,the explanatory variable and the control variable.Relevance,multiple regression analysis of the data,verifying the research conclusions of the large shareholder equity pledge on the innovation investment of the enterprise and the stability test of the empirical results.Finally,the research results are discussed and analyzed,and corresponding research suggestions are proposed for different problems.In addition,the possible limitations of this study are summarized,and the research shortcomings and prospects of this paper are proposed.This paper collects data on China's A-share manufacturing listed companies during the nine-year period from 2009 to 2017,and discusses the impact of large shareholder equity pledges on corporate innovation activities.According to the regression results,(1)the shareholder pledge of the major shareholder is significantly negatively correlated with the innovation investment of the enterprise.The size of the firm in the control variable,the shareholding ratio of the largest shareholder,the age of the company and the asset-liability ratio are significantly negatively correlated with the innovation investment of the enterprise.The net operating cash flow,corporate value and return on assets are significantly positively correlated with the innovation investment of enterprises;(2)According to the nature of property rights,the listed companies in China's A-share manufacturing are divided into state-owned enterprises and non-state-owned enterprises for group inspection and return.The results show that compared with state-owned listed companies,the negative correlation between the equity pledge of large shareholder of non-state-owned listed companies and the intensity of innovation input of enterprises is more significant.(3)Joining the external governance environment as a moderator,the coefficient of interactivity is significantly positive,indicating that the improvement of the external governance environment can inhibit the negative correlation between the shareholder pledge of large shareholders and the innovation investment of enterprises.Through empirical analysis,this paper verifies the correlation between equity pledge and enterprise innovation investment,and tests whether the relationship between large shareholders' equity pledge and enterprise innovation investment differs in different enterprises according to the nature of property rights,and deepens the pledge of equity.And the understanding of corporate innovation.The research results of this paper expand the research space of equity pledge and enterprise innovation,further clarify the mechanism of large shareholders' equity pledge and innovation,and provide a good research basis for studying the innovation problems at the enterprise level from the perspective of major shareholders.