Research On The Impact Of Stock Price Collapse Risk On Private Enterprise Innovation

Enterprises are the micro-subjects of innovation implementation.Innovation is the resource of power to support and improve the core competitiveness of enterprises.However,innovation has the characteristics of long cycle,high risk,high investment and lagging income,and its sustainability requires stable and sufficient resources of funds as a guarantee.Especially in the context of the current innovation-driven strategy,it is indivisible from the important role of capital market in promoting enterprise innovation activities.The stock price crash is an extreme financial anomaly of stock price volatility in capital markets.In recent years,it is not uncommon for stock prices to rise and fall sharply.In 2015,China’s stock market experienced a slump of thousands of shares.Since April2017,flash crash stocks have appeared continuously.In March 2020,due to the new coronavirus epidemic,the market value fell by 26 % in just four days.Abnormal stock price fluctuations not only bring negative impact on shareholders’ wealth,but also hinder economic development and normal corporate investment and financing activities,greatly damaging the value and reputation of enterprises.For this reason,this paper through studying the change of enterprise behavior decision caused by the occurrence of share price collapse risk in financial market,so as to test its influence and mechanism on enterprise innovation activities.Because of this,this essay choice samples of private listed companies in Shanghai and Shenzhen A-shares from 2014 to 2020 for an empirical study,and the results indicate that:(1)The share price collapse risk exists a significant negative impact on private corporate innovation investment;(2)Through the heterogeneity test,it can be seen that for private enterprises with poor information transparency and low audit quality,the stock price crash risk has a stronger inhibitory effect on their innovation investment,while the negative correlation between the two is not obvious in private enterprises with high information transparency and high audit quality;(3)Through the mechanism test,it is discovered that the risk of stock price collapse mainly through the path of exacerbating financing constraints inhibits the level of innovation investment by private firms;(4)From the perspective of innovation output,the risk of share price crash will have a negative impact on the exploitative innovation and exploratory innovation of private enterprises,which is not conducive to the promotion of innovation input to output and the development of dual innovation.The research conclusion not only provides empirical evidence that the risk of share price collapse in the stock market will impact the investment policy-making behavior of enterprises,but also helps private enterprises to carry out risk management in time for potential economic risks and stimulate their innovation vitality.