Equity Pledges, Financing Constraints and Corporate Technological Innovation: Evidence from Chinese A-Share Listed Companies

DOI

10.2991/978-94-6463-676-5_19How to use a DOI?

Keywords

Corporate technological innovation; Equity pledges; Financing constraints; CEO duality

Abstract

This study examines the impact of equity pledging on corporate technological innovation input and output by incorporating financing constraints, using all A-share listed companies in China from 2011 to 2023 as samples. We reveals that the equity pledging behavior of controlling shareholders facilitates corporate technological innovation in terms of both input and output. However, an increase in the proportion of equity pledging by controlling shareholders significantly inhibits corporate technological innovation input. Financing constraints exert an inhibitory effect on both corporate technological innovation input and output. Further examination indicates that in firms with a higher degree of financialization, the promotional effect of equity pledging on technological innovation input is more pronounced. In contrast, within companies where controlling shareholders hold a lower proportion of shares, the inhibitory effect of financing constraints on technological innovation output is more significant. Moreover, by examining the moderating effect of CEO duality with equity pledge and financing constraints, we found CEO duality mitigates the inhibiting effect of financing constraints on corporate technological innovation and intensifies the extent and direction of the original impact of equity pledge ratios.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Guanchi Tong
AU  - Ningman Yang
AU  - Yanli Zhou
PY  - 2025
DA  - 2025/04/15
TI  - Equity Pledges, Financing Constraints and Corporate Technological Innovation: Evidence from Chinese A-Share Listed Companies
BT  - Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024)
PB  - Atlantis Press
SP  - 168
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-676-5_19
DO  - 10.2991/978-94-6463-676-5_19
ID  - Tong2025
ER  -