Research On The Impact Of Large Shareholder's Equity Pledge On Enterprise Innovation

Since 2013,the Shanghai and shenzhen exchanges through stock pledged repo this progressive activities,since each year by the court and in proportion to the number of listed companies and the pledge of pledge of otc have been rising,visible through the equity pledge financing of listed companies has become more and more common.Under the trend of social and economic development,enterprise innovation to promote enterprise long-term development,enhance their core competitiveness,an increasingly important role in the enterprise is facing in the development of capital markets to stay competitive and innovative.challenges.Directly embodied in innovation of r&d investment,capital(personnel)and innovation efficiency(patent,products),although the enterprise innovation input to the enterprise development play a key role,but the most core factor of the success of the innovation depends on the implementation of the main body of innovation.Big shareholders as a corporate controller,not only is the investment enterprise management strategy formulation and research how much money the helm,can affect the management of major business decision-making,the benefits and risks for the companies can coexist corporate r&d activities have a big decision.Therefore,this article attempts from the Angle of the big shareholders' behavior namely equity pledge,verify whether there is a big shareholders to enterprise innovation,and hope to find new ideas to improve business performance finally.This article first expounds the equity pledge and enterprise innovation theme related research background and practical significance,the study of theory and research methods and research idea for this article made a brief narrative,also in this study are summarized on the basis of existing research some innovative points.Secondly,this paper analyzes the motivation,risks and consequences of equity pledge and the factors related to enterprise innovation.From three aspects that the existing literature at home and abroad research results about the share pledge,reviews the domestic and international relevant research achievements of enterprise innovation,classifying different influence factors of enterprise innovation,and combining with the case use publicly available data on the relationship between the preliminary explanation,of equity pledge with the enterprise innovation literature is summarized and the limits of the possible is put forward.Then summarize in the conclusions of past scholars research under the premise of first use of theoretical analysis clearly requires the assumption of the foundation,and then combined with the actual in this paper,the hypothesis of reason,and further detailed assumptions listed according to different situation.Again,explains in detail the research of the sample source and the data collection process,the hypothesis is put forward by the explanatory variables,define variables and control variables are descriptive overview,and explain why do you choose these variables,explain and control variables by reasonable explain reason,and then according to the assumptions listed relevant formulas and corresponding model is put forward.Secondly,descriptive statistics and Pearson regression analysis are used to illustrate the correlation between explanatory variables and control variables.Finally,the data collected are analyzed by regression,which verifies the hypothesis conclusion of equity pledge on enterprise innovation and tests the robustness of the empirical results.Finally,the research results are discussed and analyzed,and corresponding Suggestions are proposed for different problems.In addition,the possible limitations of this study are summarized and the future research directions are proposed.This paper collects relevant data and company announcement data of China's smes and gem companies from 2007 to 2016,and discusses the influence of equity pledge of major shareholders on enterprise innovation activities.According to the regression results it is concluded that:(1)the equity pledge has negative correlation with the enterprise innovation net operating cash flow and return on assets in the control variable was significantly positively related with the enterprise innovation,enterprise scale,the first big shareholder shareholding and the pledge rate of assets and liabilities of enterprises and enterprise innovation has significant negative correlation;Number(2)the pledge in a certain extent,can measure the degree of approximation of the pledge of shares and price,and different degree of approximation effect on enterprise innovation size will be different,so the pledge is the more the enterprise innovation investment will be lower;(3)has a high stake'willingness to shareholder equity pledge is relatively weak,and any major shareholders are willing to take risks to support enterprise innovation,so holding can relieve large shareholders equity pledge the negative effect on the enterprise innovation;(4)based on the background of China's system,it is concluded that in the eastern region,the influence of major shareholders' equity pledge on enterprise innovation is less than that of major shareholders in the central and western regions.Summarize the mechanism of this effect is on the one hand,the innovation of the enterprise activities,although it is high investment and high yield,but at the same time full of unpredictable risks,as the important content of enterprise economic decisions,is bound to be affected by the decision of shareholders,the shareholders decision-making often depends on the risk preference of shareholders.On the other hand the results of the enterprise innovation,in turn,affects the control value of shareholders,the shareholders in order to protect against a drop in value,as far as possible,take measures to adjust the company's strategy and financial aspects of the investment and financing behavior.Therefore,it is expected that this paper will study the mechanism by which the equity pledge of major shareholders will have a positive or negative impact on enterprise innovation in certain specific situations and put forward Suggestions for corporate governance.Through empirical analysis,this paper verifies the equity pledge and there is some degree of correlation between enterprise innovation,and according to different situation to further test the big shareholder equity pledge influence on enterprise innovation,deepen the understanding of equity pledge and enterprise innovation.The research achievements of this paper extends the equity pledge and new space of enterprise innovation,further defined the big shareholder equity pledge with the r&d mechanism,to some extent can effectively expand the enterprise future development and progress of the space.This article from the Angle of the large shareholders and corporate innovation question research work provide a good basis,the next step may consider starting from the influence mechanism of more different,to discuss whether the type of equity pledge can through some mechanism on enterprise innovation,this has practical significance for enterprises in the process of upgrading.