The equity pledge of major shareholders and innovation investment -- Based on the empirical data of GEM listed companies

This paper takes China’s GEM listed companies from 2007 to 2020 as the research object, and empirically tests the impact of equity pledge of major shareholders on enterprise innovation investment. It is found that the equity pledge of major shareholders will restrain the innovation investment of enterprises. Further research finds that enterprises with high internal control level, the inhibiting effect of equity pledge of major shareholders on innovation investment will be weakened, that is, internal control plays a negative regulating role