Whether Going Public Can Promote Enterprise Innovation

In today's society where science and technology are developing rapidly,independent innovation is becoming more and more important in promoting economic growth,safeguarding national security,and promoting social progress.Therefore,innovation research has always been a hot topic for scholars.Among the main innovators in our country,the independent innovation ability of enterprises is our particular concern.Because enterprise innovation requires a large amount of capital investment,the financing sources of enterprises often affect their innovation activities.With the development of China's capital market,the stock market as an important link between enterprises and capital markets has been favored by many enterprises,so equity financing has been a hot topic for scholars.Due to the limitation of data,there are few studies on the impact of IPO on enterprise innovation activities in China.Most of them focus on the comparative study of listed companies and non-listed companies in earnings management,information disclosure and business performance.Through the quasi-natural experiment of IPO suspension in 2012,this paper constructs a unique sample of listed companies and queuing companies.Combining with the differences-in-differences model,this paper makes an empirical study on whether IPO promotes enterprise innovation.That is to say,it studies the patent application and patent citation of two groups of enterprises before and after IPO,and systematically discusses the impact of IPO on enterprise innovation activities and its internal mechanisms.Through the empirical analysis of this paper,we draw the following conclusions: Firstly,we analyze the regression results of three groups of samples of listed companies and queuing companies,listed companies and restart companies,listed companies and non-listed companies.After eliminating the impact of restart companies,we can see that corporate IPO can increase the number of patent applications and the number of patents cited by listed companies,that is to say,the listing of enterprises has promoted the innovation activities of enterprises both in quantity and quality.Secondly,By comparing and analyzing the innovative activities of state-owned enterprises and non-state-owned enterprises,innovative enterprises and non-innovative enterprises,we find that the innovative driving effect of IPO on non-state-owned enterprises is greater than that of state-owned enterprises,and the innovative driving effect on innovative enterprises is greater than that of non-innovative enterprises.Therefore,we conclude that the internal mechanism of enterprise innovation is that IPO can ease the financing constraints of enterprises.Thirdly,we further divide the sample companies into manufacturing enterprises and non-manufacturing enterprises.Through regression analysis,we find that IPO has a greater driving effect on innovation of manufacturing enterprises than non-manufacturing enterprises.The conclusions of this paper provide some suggestions for relevant policy makers in China: Firstly,we must speed up the implementation of the reform of the registration system of stock listing,Whether a company can be listed and traded,and how many shares of stock it can issue are decided by the whole capital market,and the market mechanism is used to effectively allocate resources to help the independent innovation enterprises to better finance through the stock market.Secondly,we must create financing channels and expand the scope of financing and give certain convenience to the debt financing of enterprises,such as improving the domestic credit guarantee system,giving financial interest subsidies to credit financing of innovative enterprises.Thirdly,while improving the regulatory system,we should reduce unnecessary administrative intervention.