Research On The Impact Of Large Shareholder Pledge On Enterprise Innovation Investment

Innovation is the driving force for the country to maintain economic growth,and it is the guarantee for enterprises to maintain their core competitiveness.However,the long-term cyclicality and uncertainty of innovation determine the company’s demand for capital is quite large,and China’s listed companies generally face strong Financing constraints,especially for private enterprises,are urgently needed for new and more convenient financing channels.In recent years,the shareholding pledge of large shareholders of listed companies has become a common phenomenon in China’s capital market,almost includingall listed companies,because the convenience of equity pledge is favored by the major shareholders of listed companies,which can alleviate the financing constraint faced by the company in time.Although the equity pledge has various advantages,the control transfer risk over the equity pledge and the risk of default also need to attract our attention.In addition,the negative impact of large shareholder equity pledge on listed companies,such as the possibility of using equity pledge to short-sell listed companies,encroaching on the interests of small and medium-sized shareholders,etc.,has a negative impact on the healthy development of the stock market.This paper studies the relationship between the equity pledge behavior of large shareholders and the innovation investment of enterprises.It aims to cut in from the perspective of equity pledge and test whether the pledge behavior of large shareholders has influence on the innovation investment and the way of influence,so that we can find new ways to improve corporate innovation and ultimately achieves the goal of improving the company’s benefits.This paper first briefly introduces the research background related to enterprise innovation and equity pledge and the problems existing in it,which leads to the research topic of this paper,and then introduces the research significance and research methods.Secondly,it sorts out the literature on the motives of equity pledge and economic consequences and the impact on corporate innovation,and makes a brief literature review.Subsequently,the concept definition and theoretical basis of this paper are expounded,and the hypothesis is put forward on this basis.Finally,this paper uses the 2013-2017 China Shanghai and Shenzhen stock market listed companies as the research object,uses empirical analysis method to study the relationship between the shareholder pledge of large shareholders and the innovation investment of enterprises,and explores regulatory effect of the equity structure measurement indicators.Through group regression and stratified regression empirical analysis,it is concluded that the shareholding pledge of large shareholders is significantly negatively correlated with the innovation investment of enterprises.For companies with different equity nature,the impact of large shareholder equity pledge on corporate innovation investment is different.The impact of large-share shareholder pledge of state-owned enterprises on enterprise innovation investment is not significant.The non-state-owned enterprise shareholder pledge is significantly negatively related to enterprise innovation investment.For listed companies with different concentration of shares,the shareholding pledge of their major shareholders has a significant negative impact on the innovation investment of enterprises,and the degree of negative influence changes first decreases and then increases with the increase of the concentration of ownership.The balance of equity has a significant positive correlation with the innovation investment of enterprises,but it has a positive adjustment effect on the negative correlation between the shareholding pledge of large shareholders and the innovation investment of enterprises.