Research On The Impact Of Controlling Shareholder’s Equity Pledge On Entity Investment In Listed Manufacturing

Since the reform of non-tradable shares in 2005,equity pledge has become an important means of financing for listed companies,and the phenomenon of equity pledge by controlling shareholders has become more and more common,and its average share pledge ratio has remained high in recent years.However,financing is one thing,and what is the destination of the financing,whether it is invested in the financial or real estate sector or the real economy,is another matter,which deserves the attention of academic circles and regulatory agencies.At present,most of the existing literature focuses on the influence of the controlling shareholder’s equity pledge on the company’s value and economic consequences,and there is little research on the influence on the entity investment.The "14th Five-Year Plan" proposes that we should focus on the real economy,accelerate the development of modern industrial system,and promote the optimization and upgrading of the economic system.However,the emergence of the COVID-19 epidemic has had a huge impact on the development and transformation of China’s real economy,and the manufacturing industry bears the brunt as the foundation of the real economy.Strict epidemic prevention and control measures are both a protection and a burden for manufacturing enterprises to resume work.Under the new situation that the country’s judgment on the epidemic situation has changed and the epidemic prevention measures have been continuously optimized and adjusted,it is very necessary to focus on how to boost the economy,especially the real economy,and study how to promote the recovery of the manufacturing industry.Based on the above reasons,this paper selects the data of listed companies in China’s Ashare manufacturing industry from 2011 to 2020 as the research object.Firstly,it discusses whether the equity pledge of the controlling shareholder can affect the investment level of the enterprise entity and the influence of different equity pledge ratios on the investment level of the entity;Secondly,this paper chooses innovation investment as the influence channel to study what kind of regulatory effect innovation investment has played;Finally,according to the nature of property rights,the heterogeneity analysis is carried out,and the endogenous test is carried out by PSM propensity score matching method to solve the possible endogenous problems.The results show that:firstly,the controlling shareholder’s equity pledge can promote the level of enterprise’s entity investment,and at the same time,the level of enterprise’s entity investment is positively correlated with the proportion of controlling shareholder’s equity pledge.Secondly,through the research on the influence mechanism of moderating variables,this paper finds that innovation investment plays a moderating role in the influence of controlling shareholder’s equity pledge on the entity investment level of manufacturing listed companies.Thirdly,through heterogeneity analysis,it is found that compared with private enterprises,the controlling shareholder’s equity pledge plays a more obvious role in promoting entity investment,and the proportion of equity pledge has a stronger role in promoting entity investment level than non-state-owned enterprises.