Corporate Innovation, Heterogeneity Of Institutional Investors, And The Risk Of Stock Prices Plummeting

Under the institutional background of China's economic restructuring and economic slowdown,the improvement of innovation capacity has become crucial.At the 2006 national science and technology conference,it was proposed to build an innovation-oriented country by 2020,and scientific and technological innovation will become the core driving force of China's economic development.Innovation was mentioned in the report to the 19 th national congress of the communist party of China(CPC).It is believed that innovation is the primary driving force for development,and innovation is needed to strategically support the building of a modern economic system.At the same time,innovation can also improve the core competitiveness of enterprises.In the past two decades,the proportion of R&D in GDP in China has been increasing,especially the number of patents.However,the data show that the growth rate of r&d innovation activities is gradually increasing,which will have a certain impact on the company's performance and stock price.At the same time,innovation-oriented enterprises have experienced the phenomenon of precipitous stock price crash.What is the reason that the increase of R&D investment activities brings the risk of stock price crash?The existing literature mainly deals with the internal mechanism of corporate governance,capital structure,relationship between government and enterprises,financing constraints,etc.,but the literature focusing on the relationship between enterprise innovation and the risk of stock price collapse is somewhat scarce.Therefore,this article first to the enterprise,the relationship between the risk of innovation and tumbling shares by reviewing related theory and literature review and research hypothesis,csi data as samples,empirically the relationship between risk,enterprise innovation and tumbling shares further do in-depth analysis from the perspective of institutional investors heterogeneity,robustness testing and further research to support the research results in this paper.It is found that enterprise innovation can significantly increase the risk of stock price collapse,and the adjustment analysis from the perspective of institutional investor heterogeneity shows that large institutional investors will enhance the positive relationship between them,while small institutional investors will weaken the relationship between them.In the robustness test,stable institutional investors can prove the positive relationship between enterprise innovation and the risk of stock price collapse,while transactional institutional investors weaken the relationship between the two.Then the relationship between enterprise innovation and the risk of stock price collapse is explored under the condition of property right nature and marketization degree.The research conclusion provides certain research basis for the stable and orderly financial market and the prevention of financial risks.