Equity Pledge Of Controlling Shareholder,Equity Balance And Corporate R&D Investment

With the introduction of equity pledge and the continuous improvement of relevant policies,the number of listed companies financing through equity pledge in the A-share market is increasing,and the financing scale is also increasing.Although the pledge of equity as an important way of financing for listed enterprises needs the state to relax restrictions and support vigorously,in fact,the motivation of shareholders to pledge equity is not simple.Therefore,equity pledge not only helps enterprises to expand financing channels,but also sows some hidden dangers for enterprises.At present,China has entered "the new normal",and it pays more attention to the quality of economic development while pursuing the speed of economic development.From both macro and micro perspectives,the importance of innovation activities cannot be underestimated.The key to innovation is to ensure the investment in R&D,and the decisions made by shareholders and management affect it.Therefore,this paper starts from the relationship between the equity pledge of controlling shareholders and R&D investment and further explore the impact of equity balances on their relationship in enterprises with different property rights.Firstly,this paper introduces the research background,explains the theoretical and practical significance of this research,and briefly expounds the research method,research content and main innovation points compared with previous studies.The second part is the literature review.This paper mainly reviews and summarizes the domestic and foreign literature on the motivation and economic consequences of equity pledge,R&D investment,and the influence of equity balances.In the part of theoretical analysis and research hypothesis,the research problems and corresponding theoretical basis are further clarified,and specific hypotheses are put forward accordingly.Then we introduce the source of research data,the selection and definition of variables,conducts descriptive statistics,and lists the regression mode.The hypothesis was verified by regression on the collected and sorted data,and the robustness tests were also conducted.The last part is the summary of the research conclusions,analyzing the implications of the research conclusions for relevant policy formulation and corporate internal governance,and putting forward corresponding suggestions.In addition,thinking of the possible limitations of the research and looking forward to the further research.The main research conclusions of this paper are as follows :(1)The relationship between the R&D investment the equity pledge of controlling shareholders differs for enterprises with different property rights,which is significantly negative in non-stateowned enterprises but not significant in state-owned enterprises;(2)The higher the degree of equity checks and balances in non-state-owned enterprises,the greater the negative influence of the equity pledge of the controlling shareholders on the R&D investment;(3)The lower the shareholding proportion of the controlling shareholder,the more likely the equity balance will lead to the collusion of shareholders and reduce the investment in research and development;(4)The collusion motive will be more obvious under the equity balance when there are relational shareholders in the nonstate-owned enterprises.On the one hand,the innovation of this paper is to find that the relationship between the equity pledge of controlling shareholders and R&D investment in stateowned enterprises and non-state-owned enterprises is different,improving existing relevant research.On the other hand,this paper innovatively introduces the variable of equity balance and analyzes its influence on the relationship between the equity pledge of controlling shareholders and R&D investment from the perspective of internal supervision and governance.The influence of controlling shareholders' shareholding proportion and the existence of relationship shareholders on the above relationship is also considered.It not only complements the relevant research on equity pledge,but also expands the research on the factors affecting the investment in enterprise innovation,and enriches the relevant research results of the agency theory.This has important practical significance for promoting the improvement of relevant systems,restraining the second type of agency problem,and ensuring the innovation level of enterprises.It can also guide different enterprises to better adjust the ownership structure and improve the internal supervision and governance mechanism.