Innovative Inputs And Market Performance

With the continuous development of the market economy,the status of enterprises in the whole process of economic development is becoming more and more important.In this period of innovation-driven development,enterprises are the mainstay of national innovation investment.This paper starts from the research of enterprises' R&D investment and discusses the relationship between inovation input and market performance.This paper takes the 2010-2017 Shanghai-Shenzhen Ashare listed companies as a research sample,empirically analyzes the relationship between the proportion of R&D investment and the risk of stock price crash,and demonstrates the role played by the performance improvement mechanism.Empirical evidence sthows that he proportion of R&D investment can curb the stock price collapse risk and contribute to the path of R&D investment – long-term performance of the firm – stock price collapse risk.When the samples are grouped by 2015 for regression,it is found that the negative correlation between the proportion of R & D investment and the risk of stock price collapse is significantly weakened in 2015 and beyond,which indicates that the stock market crash in 2015 has a greater impact on the whole A-share market..In addition,this paper further studies whether the relationship between R&D investment ratio and stock price collapse risk will change under different government innovation subsidies,different enterprise ownership characteristics and different listed sectors.The empirical results show that in the A-share market,The negative correlation between the proportion of R&D investment and the stock price collapse risk will be weaker in enterprises which is state-owned ? Listed on the GEM or enjoying higher government subsidies,which also conform to the hypothesis of performance improvement mechanism.Therefore,companies need to increase their R&D investment,and focus on improving their long-term performance,ensuring their sustainable and stable performance in the capital market and enhancing investor confidence and reducing the risk of stock price collapse.At the same time,enterprises must take into account their own characteristics when making innovative decisions.If the government's subsidy for enterprises innovation is not very high,if it is a non-state-owned enterprise,if it is a non-GEM listed company,then its R&D investment will have more positive market response.