Internationai Business Operation,Innovation And Stock Market Performance

Nowadays internationalized enterprises in emerging economy countries operate in the diversified institutional context,and they have heterogeneous characteristics.Because they tend to accelerate the process of internationalization in the absence of competitive resources.As a key way to enhance the core competitiveness of enterprises,technological innovation is influenced by many complex factors inside and outside the enterprise.Under the influence of external market competition pressure and internal redundant resources,whether enterprises' internationalization process significantly promote the increase of R&D investment or not? Further whether R&D investment can enhance the company's business performance and its' market value,and then it can receive a positive evaluation of the capital market? The related effects and the path of the intermediary mechanism are still unclear.This paper uses the panel data of Chinese capital market's listed companies from the year 2010 to 2017,and in order to verify whether the Chinese capital market is effective in supporting innovation financing and improving the efficiency of resource allocation or not,we make an empirical study on the relationship between R&D investment and the stock market performance of internationalized enterprises.And the study finds that: The companies' international business strategy can significantly promote enterprises' R&D investment,the greater competitive pressure and the more redundant resources within the enterprise,the more significant this positive impact,and then the more R&D investment,the higher excess investment income that investors would require.At the same time,this paper verifies the existence of the intermediary mechanism: the mechanism of internal financial performance improvement,the mechanism of external investors' concern.Especially the group tests show that the effect of private,high-tech industry,better internal control quality and the higher productivity enterprises are more significant.What's more,the robustness test also supports the main research conclusions.The paper also find that state-owned enterprises and high-tech enterprises' R&D investment are less efficient.Finally,in order to response to the above phenomenon,this paper also proposes relevant policy recommendations.