Research On The Impact Of Controlling Shareholder Equity Pledge On Enterprise Innovation

The capital market is an important part of the financial system.Since the economic reform in the 1970 s,China’s capital market has developed rapidly.However,compared with the long-term development of capital markets in developed countries,China,as a rapidly developing country,still has many problems behind the development of its capital market.The circulation of funds is also one of them.In recent years,various companies have faced financing difficulties.Equity pledges have emerged as an effective way to solve financing difficulties.With the rise of equity pledges as a financing method,its economic consequences It has also become a hot topic of discussion in academia.As the country’s emphasis on innovation continues to increase and giants in the market are suppressing technology,corporate innovation is imminent.Corporate innovation has a positive external effect.It can not only provide society with new products or services to meet social needs,but more importantly,influence and drive A group of companies or even an industry promotes economic development.In recent years,some scholars have conducted research and discussion on the relationship between the two,but the research on corporate governance as an intermediary variable is rare.Innovation,in the end,it is the behavior of its own development,only from within the enterprise to improve its innovation capabilities.Based on this problem,the sample research data selected in this thesis are the A-share listed companies in China from 2013 to 2019,and the relevant moderating variables introduced are the level of corporate governance structure,and the influence of equity pledge on the innovation ability and efficiency of companies is explored in turn.The empirical research findings of this thesis found that: First,the R&D investment and R&D output of the controlling shareholder are smaller than those of other companies,and the innovation efficiency is lower than that of other companies;it shows that the equity pledge of the controlling shareholder will inhibit the ability of the enterprise in innovation.Second,factors related to corporate governance,can effectively suppress the negative correlation between the two,indicating that good corporate governance has a positive regulatory effect on the relationship between equity pledge and enterprise innovation.Based on the empirical conclusions drawn in this thesis,the following suggestions are proposed: First,regulators should improve the information disclosure system for equity pledges and strengthen external supervision;second,government agencies should provide multiple financing methods,expand financing channels,and provide policy support for innovative companies.Such as providing financial subsidies,implementing tax incentives,etc.;third,for the enterprise itself,improve the equity incentive system,appropriately reduce the concentration of equity,and reduce the behavior of major shareholders or controlling shareholders to "appropriate" the interests of small and medium investors.This article enriches the theory of corporate governance,reveals the negative effects of equity pledge from different angles,and provides a new direction for future research on the relationship between equity pledge and corporate innovation.On the other hand,it is also of practical significance to play the positive role of equity pledge to reduce the negative role.