Research On The Influence Of New Regulation Of Equity Pledge On Enterprise Innovation

The report to the 19 th National Congress of the CPC put forward the requirements for comprehensively deepening the reform of the financial system and preventing and defusing financial risks.The 20 th National Congress of the CPC further put forward the requirements for strengthening modern financial supervision and regulation and continuously strengthening the ability to prevent and control financial risks.Due to its convenience,equity pledge occupies an important seat in the capital market of our country.It is not only huge in volume,but also exists the phenomenon that financing funds are put back into the secondary market,so the "withdrawal from real to virtual" increases financial risks and affects enterprise innovation and financial market stability.The issuance of new regulations on pledge in 2018 limited the scale of equity pledge and restricted the investment of funds into the secondary market,and subsequently the scale of pledge declined significantly.In order to explore whether the promulgation of new regulations on pledge will have A positive impact on enterprise innovation,this paper selects the equity pledge data of Shanghai and Shenzhen A-share listed companies from 2011 to 2021,uses the differential model and takes the degree of inefficient investment and the level of financial investment as the mechanism to study the impact of the exogenous impact of new regulations on pledge on enterprise innovation.The results show that the promulgation of the new regulation on pledge will indeed improve the level of enterprise innovation,and promote enterprise innovation by reducing the degree of inefficient investment,but the level of financial investment does not decrease,and does not inhibit the "real to virtual" of enterprises.This is because: the risk of control transfer and the second type of agency problem are alleviated with the reduction of the scale of pledge,which makes shareholders pay more attention to the long-term development of enterprises and are willing to invest in R&D projects with net present value greater than 0,so as to promote enterprise innovation.However,enterprises may make financial investment by diverting other financing funds,and the financing constraints of enterprises may be increased after limiting the scale of pledge,which will make enterprises more eager for short-term high profits,which is not conducive to the reduction of financial investment level.In addition,in terms of heterogeneity test,this paper finds that in non-state-owned enterprises and enterprises with low separation rate of two rights,the promulgation of the new regulation of equity pledge will promote enterprise innovation,but in enterprises with high separation rate of two rights and state-owned enterprises,it has no effect.In addition,parallel trend test and placebo test were carried out in this paper,and the results remained robust.The innovation points of this paper are as follows:(1)To study the influence of new regulations on equity pledge on enterprise innovation,and to link external policies with internal governance of enterprises;(2)The influence channels of the degree of inefficient investment and financial investment mechanisms on enterprise innovation are studied to increase the depth of the research;(3)The treatment group and control group are distinguished by whether equity pledge or not,and the proportion of equity pledge of controlling shareholders is used to distinguish groups in the robustness test,so the consideration is more comprehensive.This paper links external policies with internal investment efficiency,financial investment and enterprise innovation,and provides ideas for related departments to control risks in the capital market.