Controlling Shareholders’ Equity Pledge, Financing Constraints and Corporate R&D Investment

Abstract

In recent years, equity pledge has gradually become an emerging financing method for enterprises to solve financing difficulties, which has attracted the attention of many shareholders and financial institutions. As an important driving force for enterprises to carry out economic transformation and upgrading, innovation can also effectively enhance their core competitiveness in the same industry. This paper selects the data of China’s A-share ChiNext listed companies from 2013 to 2021 as the analysis object, and studies the impact of equity pledge and corporate R&D investment and the intermediary role played by financing constraints, and the results show that the equity pledge of controlling shareholders is significantly negatively correlated with corporate R&D investment, and the inhibition effect is more obvious with the increase of equity pledge ratio. In addition, this paper finds that financing constraints play a partial intermediary role in the relationship between controlling shareholders’ equity pledge and enterprise innovation. In response to this situation, this paper puts forward corresponding countermeasures and suggestions.