Research On The Impact Of Equity Pledge On Enterprise Innovation

Since 2013,affected by factors such as financial innovation in the capital market,the equity pledge business has developed rapidly,but its risks have not been well controlled.Equity pledge business has always been favored by company shareholders because of its unique advantages due to its convenient operation,and has gradually become a common financing method in the capital market.However,in recent years,in some companies,large shareholders have pledged their equity in an excessively high proportion,resulting in frequent problems and liquidation incidents.The risk of equity pledge has attracted more and more attention.When making equity pledge announcements,many listed companies claim that the purpose of their equity pledge financing is to increase the company’s innovation investment,such as Le TV.Undoubtedly,innovation is the most critical link in the development process of an enterprise and the core competitiveness on which an enterprise depends.Although these companies claim that their goal is to increase innovation investment and enhance innovation capabilities,are the facts consistent with their stated goals? How’s the effect? What are the successes or failures? The discussion of these issues will not only help clarify the relationship between equity pledge and innovation,but also help scientifically manage the equity pledge business.Therefore,this paper intends to study the impact of shareholder equity pledge on corporate innovation.The article first summarizes and sorts out relevant domestic literature on equity pledge and enterprise innovation,hoping to learn about the latest research results and methods,and to be familiar with related theories.Secondly,relevant hypotheses are put forward through the analysis of relevant theories,and finally some domestic A-shares from 2011 to 2021 are taken as the research object.The higher the ratio,the stronger the impact on the innovation ability of listed companies.Second,the negative impact of equity pledges on innovation may play a role by strengthening the hollowing out behavior of large shareholders and increasing corporate financing constraints.Third,an effective external supervision mechanism and an excellent internal governance system can alleviate this negative effect.In addition,the growth of the enterprise will also inhibit this negative effect...