| Innovation is the source of national economic development.The report of the Nineteenth National Congress of the Communist Party of China pointed out that it is necessary to establish a company-based and market-oriented technological innovation system.Technological innovation is inseparable from the strong support of funds.Although the intensity of China’s corporate innovation input is increasing year by year,it is still relatively weak compared with developed countries.At present,equity pledge is widely welcomed in the capital market.While equity pledge brings convenience to shareholders,the risks involved cannot be underestimated,which in turn affects innovation investment.After the equity pledge of the major shareholders,if there is insufficient solvency and the value of the collateral drops,it will trigger the risk of transfer of the listed company Right of Control However,corporate innovation investment activities have high risks and long cycles.Once failure may affect the company’s stock price,major shareholders will face pressure to continue to increase pledges or liquidate their holdings.Therefore,in order to avoid the risk of transfer of control rights,major shareholders will adjust their business decisions,which will affect the development of innovative activities.So far,few scholars have paid attention to the impact of equity pledge by major shareholders on the innovation investment of enterprises.Therefore,it is of practical significance to study the influence of the equity pledge of major shareholders on the innovation investment of enterprises.This article attempts to explore the relationship between the equity pledge of major shareholders and the innovation investment of enterprises based on the theory of technology innovation,signal transmission theory,and principal-agent theory.The article examines the difference between the two roles under different characteristics of equity from three perspectives: the nature of equity,the concentration of equity,and the balance of equity.This article also with a view to showing the mechanism of the equity pledge of major shareholders to the innovation investment of enterprises,so as to make relevant suggestions for the government,financial institutions and other departments,further standardize the equity pledge financing system in China,and help build an innovative country.Since most of the SME board and GEM listed companies are high-tech companies,this article uses the data of China’s SME board and GEM listed companies from 2014 to 2018 as a research sample.We conduct analyses for the internal relationship between the pledge of equity of major shareholders and the intensity of corporate innovation investment,and the changes of two roles in the relationship under different equity characteristics.Based on the regression,the four conclusions are drawn.First,the equity pledge of major shareholders and innovation input of enterprises is significantly negative correlation.Second,the negative relationship between equity pledge of major shareholder of non-state-owned enterprises and corporate innovation investment is more significant compared to state-owned enterprises.Third,the negative relationship between the equity pledge of the major shareholder of the company with high equity concentration and the innovation investment of the company is more significant compared to companies with diversified equity.Fourth,Equity checks and balances can alleviate the negative relationship between the equity pledge of the major shareholder and the innovation investment of the company to a certain extent.Through research,this article broadens the research on the economic consequences of major shareholder equity pledges,and provides suggestions for improving relevant laws and regulations.At the same time,this article provides a new perspective for researching corporate innovation investment,and has certain reference significance in helping companies to carry out innovation activities,and promote the coordinated development between the market capitalizations with enterprise innovation investment. |
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