Research On The Impact Of The Pledge Of Major Shareholders' Equity On The Innovation Investment Of Enterprises

Innovation ability is not only an important driving force for the development of enterprises,but also the core competitive advantage of enterprises,and even directly related to the long-term operation and survival of enterprises.In order to maintain the prosperity of the enterprise itself,when the enterprise develops to a certain stage,it will carry out scale expansion or investment innovation,which need a lot of financial support.Equity pledge has become one of the important financing channels for entrepreneurs to obtain a large amount of funds and solve financing constraints.However,as we all know,innovation activities are different from the traditional production and business model of the enterprise,which requires a lot of capital investment,and the fund recovery period is long,and the accompanying risks are also great.In this way,it is easy for enterprises to face the shortage of external funds when they carry out innovation activities.However,the major shareholders who have pledged their shares will attach great importance to the stock price,because they are worried that the collapse of the stock price will threaten their control right,so such major shareholders usually adopt sound strategies to operate,rather than innovative investment.Therefore,in order to study the impact of the pledge of major shareholders' equity on the innovation investment of enterprises,this paper takes China's GEM listed companies as the research object,builds a model based on the corresponding data of China's GEM listed companies in 2014-2018,and uses Stata to test the model.The results show that:(1)under the condition of controlling other variables unchanged,the pledge of large shareholder's equity has a negative correlation with innovation investment;(2)under the condition of controlling other variables unchanged,the higher the proportion of large shareholder's equity,the more can alleviate the negative correlation between pledge of large shareholder's equity and innovation investment;(3)under the condition of other conditions unchanged,the higher the effectiveness of market value management,the more can alleviate the negative correlation between the pledge of major shareholders' equity and the innovation investment of enterprises.Finally,this paper proposes that enterprises should strengthen the establishment and improvement of the information system of the pledge of major shareholders' equity;enterprises should do a good job in risk prevention when carrying out innovation activities,and establish perfect remedial measures for the possible failure of innovation activities;at the same time,enterprises should strengthen the importance of market value management.This paper not only reveals the impact mechanism of the pledge of the major shareholders' equity on the innovation investment of enterprises,but also complements and enriches the connotation of market value management.