A Study Of The Impact Of Equity Pledges On Enterprise’s Green Technological Innovation

Deepening enterprise green technology innovation is an important grasping and implementation strategy to promote green technology development,and the green transformation of heavy polluting enterprises is an urgent problem to be solved under the "double carbon" goal.However,the double externality of green technology innovation investment makes enterprises lack the motivation to carry out green technology innovation independently,and the innovation development is still slow under policy promotion,so it is necessary to combine the internal factors of enterprises to promote the development of enterprise’s green technological innovation.Equity pledge is a convenient means for enterprises to meet their innovation capital needs,but at the same time,equity pledge has also caused many problems,such as corporate debt explodes,which will certainly affect the development of corporate green technology innovation.At the same time,corporate green technology innovation can be divided into substantive innovation and strategic innovation,and there may be differences in the impact of equity pledging on both.In addition,management is the key decision maker of the firm,and management’s attitude towards green innovation investment varies with different risk preferences.Therefore,management’s risk preferences may play a mediating role in the path of equity pledges affecting the firm’s green technology innovation.To this end,this paper proposes hypotheses through literature review and theoretical studies,then examines the impact and mechanism of equity pledges on firms’ green technology innovation through model regressions,and analyses the heterogeneity of the impact relationship,and finally concludes the following:(1)Equity pledges have a stronger inhibitory effect on substantive green innovation than on strategic green innovation.(2)Equity pledges reduce the degree of managerial risk taking,which inhibits substantive green innovation.(3)Equity checks and balances strengthen the inhibitory effect of equity pledges on firms’ substantive green innovation.(4)The inhibitory effect of equity pledges on firms’ substantive green innovation and the mediating effect of management’s risk preference are significant in non-stateowned enterprises and firms with dispersed equityThe innovation of this paper is,first,to discuss and divide the firms’ green technology innovation into substantive and strategic innovation,and to confirm that the inhibiting effect of equity pledges on substantive green innovation is stronger than that on firms’ strategic green innovation.Secondly,it is confirmed that there is a mediating effect of managerial risk preference in the relationship between equity pledges and substantive green innovation;Thirdly,in the heterogeneity analysis,it is confirmed that equity checks and balances strengthen the inhibiting effect of equity pledges on green technology innovation,and the inhibiting effect of equity pledges on substantive green innovation and the mediating effect of managerial risk preference are found only in non-state owned firms.The mediating effect is only significant in non-state-owned enterprises with dispersed ownership.Therefore,the research in this paper can both enrich the existing research on equity pledges and corporate green innovation,and at the same time help companies to strengthen their internal regulation and promote the development of green innovation in heavy polluters.