Equity Pledge Of Controlling Shareholder,Equity Structure And Enterprise Innovation Input

At the 18 th national congress of the communist party of China(CPC),the innovation-driven strategy was put forward for the first time,and in the report of the19 th CPC national congress,it was clearly proposed to accelerate the construction of an innovation-driven country and become one of the forefront of innovation-oriented countries,indicating that the importance of innovation has been elevated to the national level.In recent years,science and technology have driven the rapid development of economy,and technological innovation has become the key factor for enterprises to improve their competitiveness.Therefore,the importance of innovation for enterprises is self-evident.On the one hand,innovation can enhance the competitiveness of enterprises,bring new economic growth points to enterprises and often accompanied by high profits;But on the other hand,innovation is an investment activity with high cost,high risk and easy to be affected by internal and external environment.Existing in enterprise innovation research mostly focus on corporate governance,the government policy,the bigger of the two aspects,such as company performance,there is very little from the shareholder level to study the influence of the shareholders' behavior of enterprise innovation,so this article introduces the behavior of the controlling shareholder equity pledge,to study the controlling shareholder equity pledge its influence on enterprise innovation investment.Equity as the pledge in China for almost twenty years of time,although time is not long,but since 2013,the Shanghai stock exchange and Shenzhen stock exchange to carry out the equity pledge the buyback activity since the equity pledge for its characteristics of convenient,efficient has become one of the main means of financing of shareholders of listed companies,according to the wind data statistics show that by 2018 the a-share listed companies of our country has 1984 shareholders equity pledge.Controlling shares have control over the listed company and influence major decisions of the company,including investment decisions on high-risk projects such as innovation investment.Will the controlling shareholders influence the decision of the company's innovation investment due to their individual behavior? From the perspective of corporate governance structure,this paper studies the influence ofequity pledge of controlling shareholders on enterprise innovation input.This paper is divided into six parts.The first part is the introduction.Firstly,it introduces the research background of equity pledge and enterprise innovation as well as the possible significance of this thesis in academic and practice.Then it introduces the research content and method of this paper,that is,it makes a simple analysis of the writing ideas of this paper.Finally,on the basis of the existing research summarized the innovation of this paper.The second part is the literature review.This paper classifies and reviews the literature at home and abroad from the three directions of equity pledge,enterprise innovation and equity structure.The research on equity pledge by domestic and foreign scholars mainly focuses on the motivation and risk of equity pledge.The research on enterprise innovation mainly focuses on the impact of government policies and corporate governance on innovation and the impact of enterprise innovation on enterprise performance.The third part is the related concepts and theoretical basis.Firstly,it defines the related concepts of controlling shareholders,equity pledge of controlling shareholders and enterprise innovation.Then,some basic theories,such as principal-agent theory,innovation theory and signal transmission theory,are expounded.The fourth part is the theoretical analysis and research hypothesis.According to the theoretical analysis,this paper puts forward three hypotheses.H2: other things being equal,equity pledge of non-state controlling shareholders has a more significant impact on innovation input than that of state controlling shareholders;H3: the lower the degree of equity balance,the more significant the influence of equity pledge of controlling shareholders on innovation input.The fifth part is the empirical analysis.Firstly,the sample selection and data sources of this paper are introduced.The data of China's a-share listed companies from 2007 to 2017 are selected as the original data.And then constructs the research model and variables involved in the model are defined,through a series of descriptive statistics,correlation analysis and regression analysis after the following three conclusions: first,the controlling shareholder and corporate innovation investment was significantly negative relationship,i.e.,the controlling shareholder equity pledge proportion is higher,enterprise innovation into the less.Second,compared with state-owned controlling shareholders,non-state-owned controlling shareholders' equity pledge has a more significant impact on enterprise innovation,that is,non-state-owned controlling shareholders are more cautious about major innovative investment projects after equity pledge.Third,under other conditions being the same,the lower the degree of equity balance,the more significant the influence of equity pledge of controlling shareholders on innovation input.That is,when the degree of equity balance of an enterprise is high,other small and medium shareholders can restrain the behavior of controlling shareholders,so as to prevent the controlling shareholders from making decisions detrimental to the enterprise to some extent.Finally,the endogeneity analysis and robustness test are carried out to further improve the reliability and stability of the research results.The sixth part is the inspiration and deficiency of the research.perfecting the financing channels of enterprises,encouraging enterprise innovation and strengthening the balance of ownership of minority shareholders over controlling shareholders.This article embarks from the controlling shareholders equity pledge the individual behavior,study the influence on enterprise innovation project,and further research on the nature of equity and equity balance degree both corporate governance factors on controlling stake in equity pledge and the influence of enterprise innovation input,enrich the enterprise innovation,equity pledge and the corporate governance of the relevant literature,has a certain practical and theoretical significance.