Research On The Impact Of Large Shareholders' Equity Pledge On Enterprise Innovation

Since 2013,with the continuous improvement of the standardization of equity pledge transactions,equity pledge has gradually become one of the main financing methods of Chinese enterprises.The number of equity pledge companies,the market value of equity pledges,the proportion of pledges,and the balance to be repurchased have been continuously increasing.Although the equity pledge can alleviate the financial pressure of the enterprise to a certain extent,due to the equity pledge,the enterprise will also face problems such as transfer of control rights and insufficient liquidity.Based on this,equity pledge with high pledge ratio is worthy of our attention.Comparing domestic and foreign research on equity pledges,we can find that mature capital markets such as the United States mainly focus on the equity pledge behavior of management,while domestic capital markets mainly focus on the equity pledge behavior of controlling shareholders or major shareholders,which is mainly The equity in mature capital markets is more dispersed,the problem of entrusted agency between shareholders and management is more serious,while the domestic market equity is more concentrated,and the conflict of interest between large shareholders and small and medium shareholders is more serious,so the discussion of the pledge behavior of large shareholders 'equity Is very necessary.Through the analysis of the market in various sectors,this paper finds that the proportion of equity pledged by enterprises in the small and medium-sized entrepreneurial sector is relatively high.Therefore,compared with companies in the main board market,SMEs are more likely to face equity pledge risk,and SMEs are also more likely to maintain stock price fluctuations.Motivation,so this article selects small and medium-sized startups as the research object.On the other hand,equity pledge will affect the company 's investment and financing behavior.As the major shareholder of the company,the major shareholder is a major decision maker.After the equity pledge,the major shareholder is likely to maintain its own interests by changing the direction of investment and financing,and as the main driving force for enterprise development,innovation is an important direction for corporate investment,so it is necessary to discuss the impact of equity pledge on corporate innovation.This paper conducts research under the framework of principal-agent theory and innovation theory and puts forward hypotheses.It chooses to use "enterprise innovation level" as the explanatory variable,and "whether the equity pledge and equity pledge rate at the end of the year" as the explanatory variables.Based on the research data of listed companies in China's SME board and GEM,empirical models were constructed based on these variables and assumptions,and correlation analysis was performed on the variables of explanatory variables,explanatory variables,and control variables to eliminate the interference of multiple collinearity issues,followed by Employ OLS regression model,fixed effect model,propensity score matching method and double difference method for empirical analysis and robustness test,and finally put forward research conclusions,give corresponding policy recommendations for different problems and summarize the existing problems in this paper Some shortcomings and put forward prospects.The paper draws the following conclusions:(1)Whether the shareholder's equity is pledged,the equity pledge ratio is negatively correlated with corporate innovation,and government subsidies,two-in-one integration,net cash flow,Tobinq and corporate innovation in the control variables are positive Correlation,the asset-liability ratio,fixed asset ratio,return on assets,company size,company age and corporate innovation in the control variables are negatively correlated.After grouping the equity pledge rate,this paper further finds that when the equity pledge rate is greater than the average value,the equity pledge rate has a negative correlation with corporate innovation.This discovery has great enlightenment on the proportion of corporate equity pledge and policy supervision.(2)Compared with state-owned enterprises,private enterprise equity pledges have a more significant impact on enterprise innovation.This result may be related to the fact that state-owned enterprises have a natural relationship with the government and it is difficult to transfer control.(3)After introducing the shareholding ratio of large shareholders,this paper finds that compared with the group with high shareholding ratio,in the group with low shareholding ratio,the pledge of shareholder's equity has a greater impact on corporate innovation.It is more likely to face the transfer of control,so large shareholders will have a stronger incentive to reduce R & D investment to maintain stock prices.The main research contributions of this paper are:(1)This paper further verifies that the high percentage of equity pledges has a negative impact on corporate innovation through empirical analysis,broadens the research between the intermediate links between equity pledges and company performance,and deepens Understanding the economic consequences of equity pledges.(2)By exploring the impact of equity pledges on corporate innovation,enterprises can improve the efficiency of capital allocation while innovating,and more effectively use equity pledge financing for innovation.(3)The previous literature usually studies the impact of A-share listed company equity pledge on corporate innovation,but rarely discusses the GEM and SME board.Therefore,it is very valuable to conduct research on the equity pledge of GEM and SME board.(4)This article introduces the perspective of the shareholding ratio of large shareholders,and conducts a group test on the entire sample based on the shareholding ratio of large shareholders.Companies can be made aware of the impact of the shareholding ratio of large shareholders on equity pledges and corporate innovation,so that companies can make better decisions about shareholding ratios.Secondly,it provides relevant reference for the regulatory department,which is conducive to the formation of benign supervision of the enterprise by the regulatory department,which makes the behavior of the major shareholders more pledged during the equity pledge,thereby promoting the healthy development of China's capital market and the real industry.