Stock Liquidity And Enterprise Innovation

In the 2022 Global Innovation Index released by the World Intellectual Property Organization,my country’s innovation capability has risen to eleventh in the world.Although there is still a certain gap with developed countries such as Switzerland,Sweden and the United States,my country’s innovation capability ranks 11 th in the world.It has been steadily improving for ten consecutive years.Under the background of the core technology "stuck neck",the goal of becoming one of the top innovative countries and becoming a world science and technology power is imminent.The company is in the main position of national innovation,which is of great significance to the construction of national innovation system.The company’s R&D innovation requires not only sufficient capital investment,but also a healthy internal and external governance system.The stock market can affect the micro-behavior of the company through various mechanisms.Stock liquidity is one of the most important characteristics of the stock market,so it is of great significance to study its impact on corporate R&D innovation.First of all,this paper takes the A-share listed companies from 2010 to 2021 as the research object,through the combing of domestic and foreign literature,combined with relevant theories,it proposes that stock liquidity inhibits corporate innovation.The core assumption is that the total number of patent applications of enterprises is used as the innovation measurement index,and the illiquidity index is used as the liquidity measurement index,and the two-way fixed effect model is used to test the impact of stock liquidity on enterprise innovation.Moreover,in order to alleviate the endogenous problem,the stock liquidity variable and the control variables such as enterprise size and asset-liability ratio are all lagged behind by one period.It is found that the increase of stock liquidity will significantly inhibit enterprise innovation.In addition,the full sample is divided into three types according to the nature of property rights: state-owned enterprises,private enterprises,and foreign capital,and further research is carried out on the relationship between stock liquidity and enterprise innovation.The results show that this inhibitory effect is most obvious in private enterprises.Then,for the robustness of the conclusions of this paper,the robustness of the research conclusions is tested by replacing the core variable measurement method,changing the sample size,replacing the model estimation method,adding other control variables and PSM-DID.The results show that the stock liquidity The conclusion of inhibiting enterprise innovation still holds true.Finally,in order to explore the mechanism of stock liquidity on corporate innovation,this paper starts from the two perspectives of institutional shareholding ratio and ownership concentration,and uses the basic framework of moderating effect and intermediary effect to carry out mechanism analysis.The research results show that the higher the institutional shareholding ratio of listed companies,the greater the inhibitory effect of stock liquidity on corporate innovation.The improvement of stock liquidity will reduce the equity concentration of listed companies,thereby inhibiting corporate innovation,and equity concentration plays an intermediary role in the process of stock liquidity inhibiting corporate innovation.Based on the research of existing scholars,this paper conducts further research on the impact of stock liquidity on corporate innovation from the perspectives of state-owned enterprises,private enterprises and foreign capital.Using the exogenous impact of the opening of "Shanghai-Hong Kong Stock Connect",this paper investigates the impact of stock liquidity improvement on corporate innovation.From the perspective of institutional shareholding ratio and shareholding concentration,it supplements how stock liquidity affects corporate innovation.Finally,based on the conclusions obtained above,this paper gives corresponding suggestions for enterprises,investors and regulatory agencies,with the hope that enterprises will establish an innovation-oriented corporate governance mechanism,investors will actively participate in corporate governance,and regulatory agencies will create an innovation-oriented macro-governance mechanism.environment.