Abstract:
In recent years, the controlling shareholder's share pledge of listed companies has become very popular in China capital market. The government encourages firms' innovation, and it has become the inevitable choice for China's economic restructuring and upgrading. This study investigates the impact of the controlling shareholder's share pledge on firms' innovation investment. We find that: (1) the controlling shareholder's share pledge has negative impact on firms' innovation investment. This negative relationship is much stronger in the firms of low share proportion of controlling shareholder and firms which CEO and board chair is the same people. (2) Furthermore, only when the ratio of share pledge is high or stock price near “liquidation line” can controlling shareholder's share pledge reduce innovation investment.
李常青, 李宇坤, 李茂良. 控股股东股权质押与企业创新投入[J]. 金融研究, 2018, 457(7): 143-157.
LI Changqing, LI Yukun, LI Maoliang. Control Shareholder's Share Pledge and Firms' Innovation Investment. Journal of Financial Research, 2018, 457(7): 143-157.
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