Research On The Influence Of Equity Pledge Financing On The Innovation Ability Of Chinext Listed Companies In China

Under the condition of rapid development of modern economy,innovation for enterprises to obtain long-term development,the role of competitive advantage is growing stronger day by day,keep the core competitive advantage has always been the goal of the enterprise constantly,how to motivate the innovation has been the government,enterprise and the focus of scholars.Although it is vital to the long-term development of an enterprise to maintain its super innovation ability,the key to the success of innovation depends on the subject of innovation.Different from enterprises in western developed countries,Chinese enterprises,especially those listed on the main board or other sectors,generally have the problem that the shareholder equity structure is the dominant share,With these stockholder absolute control over the company,they influence the innovation decisions of the corporation.Compared with the main board market,the entrepreneurial and high-tech enterprises,which are famous for their strong innovation ability and large growth space,often need more financial support in their development.With the widespread use of equity pledge financing tools,gem listed companies have found a new financing method to obtain funds through equity pledge and provide guarantee for the development of enterprises.However,the financing instrument of pledge of equity not only brings convenience to the financing of shareholders of gem listed companies,but also brings a series of risks.For example,if the major shareholders pledge their equity due to the capital needs of the enterprises innovation activities,They Faced with the failure of innovation,the company will not recover the early-stage investment,resulting in the risk of a decline in the value of the company,which will affect the attitude of the major shareholders towards the decision of innovation investment and ultimately affect the survival and development of the enterprise.Therefore,how equity pledge affects its innovation ability is worth further study.This paper takes gem listed companies as the research object to study how equity pledge financing affects the innovation ability of enterprises.Firstly,this paper expounds the research background and significance,sorts out and combs domestic and foreign related literature and specific research contents and methods of this paper and points out the innovation and deficiency of this article.Secondly,it defines the concepts of equity pledge and innovation capability,and analyzes the status quo of equity pledge financing and innovation capability of gem listed companies.Thirdly,it introduces relevant theories,analyzes the influence mechanism of equity pledge financing on the innovation ability of enterprises on this basis,and puts forward three research hypotheses through theoretical analysis.Then,the data of listed companies on gem from 2014 to 2019 were used to select research variables,establish a full-sample panel regression model,empirically test the three hypotheses proposed in this paper,and analyze the empirical results.The following conclusions:(1)the equity pledge is negatively related to the gem listed company innovation ability significantly,and equity pledge significantly inhibits gem listed companies’ innovation ability;(2)other conditions being the same,the impact of equity pledge on innovation capability of state-owned holding enterprises is obviously weaker than that of non-state-owned holding enterprises;(3)other conditions being the same,the innovation ability of enterprises with high pledge ratio is significantly weaker than that of enterprises with low pledge ratio.Finally,the author puts forward some countermeasures and Suggestions on the conclusion of empirical study.