A Study On Correlation Between Innovations And The Behavior Of Stock-market Prices

Stock prices may be affected by many reasons,such as profitability,valuation,growth and public opinion which were previously focused on.The innovation is also the key.According to “the 13 th Five-year Plan”,the improvement of innovation not only optimizes the economic structure,but also improves the production and the labor among traditional industries,thus providing internal impetus for the structural optimization and promotion.Therefore,the improvement of innovation may also impact the stock price.Due to the lack of relevant research,we abstracted the higher-ranked theory from the existing literature as a reference,that was,building the empirical model among the intangible assets,earnings and volatility to find if there was correlation between the innovation and the stock price.Then we tested under the overall and the different to understand whether the innovation signal transmits between internal and external.Referring to Jianguo Yuan,data was collected from 2009 to 2017 excluding traditional operating companies,then constructed the panel data model conducted on the R & D input,patent output,stock return,excess return,variance and characteristic fluctuation in the first and second lags.Finally,it was found that the impact in the second year may be negative,and until the third year the overall performance was positively promoted;the positive effect of innovation in high-tech industry was higherthan that in traditional one;the positive effect after “the 18 th National Congress” was higher than that before.It provides references for different individuals to achieve the optimization of individual and overall.