The Impact Of Stock Price Information Content On High Quality Corporate Development

High-quality development is the only way to build a modernized economic system,which requires continuously promoting quality,efficiency and power changes in economic development,improving total factor productivity,enhancing the innovation and competitiveness of China’s economy,and improving the sharing of social resources.At the time of the alternation of the "two centennial goals",the first priority in the current economic situation is how to open the door to enhance the high-quality development of enterprises from the micro level,among which,improving total factor productivity is the basic force of high-quality development of enterprises,enhancing the level of innovation.of enterprises is the first driving force of high-quality development,and increasing the level of social responsibility of enterprises.level is the essential requirement of the sharing concept of socialism with Chinese characteristics,and it is also the key to realize the Pareto optimum of the economy as a whole.Therefore,how to improve input-output efficiency,promote enterprise innovation and development,and enhance resource allocation capacity has become a key issue to be solved on the road of high-quality development of en terprises.In the vertical vein of enterprise development,which aspects need to improve the quality of development?First of all,the basis for improving the quality of enterprise development lies in the guarantee of enterprise production efficiency level.China’s current policy trend is to promote the speed of market clearance,as far as possible to release the precipitated resources,that is,to optimize the allocation of resources,from the efficiency improvement,technological progress and scale effect of three aspects to enhance the level of total factor productivity of enterprises,laying the foundation for high-quality enterprise development.Secondly,improving the level of innovation is the driving force for the future sustainable development of enterprises.In the new development concept,innovation is an important factor affecting sustainable economic development,especially the overall level of China’s scientific and technological development is not high,and the contribution rate to economic growth is far below the level of developed countries.Finally,the level of corporate social responsibility is an important regulator for the optimization of overall economic resources under the concept of "sharing".Enterprises’ maximization of their own benefits may not necessarily achieve the Pareto optimum of the economy as a whole,but also need to consider the consumption of public resources such as environmental protection and infrastructure,while the level of CSR can integrate enterprises from individual into the overall development of society and provide benefits to achieve the optimal allocation of resources for the economy as a whole.Based on this,the vertical vein of enterprise quality development in this paper revolves around total factor productivity,innovation level and social responsibility level.Based on the core concept of "financial system serves the real economy",the information resources in the stock market have a boosting effect on the transformation of enterprises’ economic benefits.For enterprises,on the one hand,the information generated from stock transactions is unknown to enterprises and contains the market’s evaluation and expectation of enterprises,which can help enterprises make better quality business decisions,improve investment efficiency and innovation,and enhance resource transformation efficiency;on the other hand,the feedback effect of this information can increase management performance pressure,enhance internal management efficiency,and help enterprises improve the quality of their future development.For external market participants,external market information can increase investors’ understanding of enterprises,reduce the threshold of information collection and the information risk borne by uninformed traders,and also help enterprises reduce the cost of using external funds.Therefore,the rational exploitation and utilization of information resources generated by stock market transactions is a win-win situation for both enterprises and external market participants,which ultimately feeds back to the enterprise level in terms of improving its own productivity,innovation level and social responsibility capacity,and promoting high-quality development.In summary,the main conclusions of this paper are as follows.Firstly,the study of the relationship between share price information and total factor productivity of firms identifies the underlying factors that influence the quality of firm development.The results of the study show that,firstly,the improvement of share price information content promotes the productivity level of enterprises,mainly by improving managers’ learning of information generated from external market transactions,helping enterprises to enhance their decision-making efficiency,while reducing the degree of internal and external information imbalance and the cost of using corporate capital.Secondly,corporate investment efficiency and financing constraints play a role in the relationship between share price information and corporate total factor productivity subject to partial mediating effects.Managers learn the part of share price information that firms are unaware of to enhance the level of corporate investment decisions and the stability of the capital pool,which in turn improves corporate productivity,and share price information can also directly improve the level of corporate inputs and outputs,which has a direct impact on productivity.Finally,the effect of share price information on corporate productivity is better in the case of high separation of powers and higher market risk,and this enhancement effect is weakened in firms with higher executive shareholding and more adequate cash flow.Secondly,the impact of share price information on the level of corporate innovation to the study,the first driving factor to enhance the quality of corporate development was found.The results of the study show that,firstly,the share price information content can enhance the innovation development level of enterprises,mainly by enhancing the stability of executives and reducing the cost of capital use of enterprises.Second,the expected tenure of executives and job stability,as well as the cost of capital for firms’ innovation projects are the mediating variables affecting the relationship between share price information and innovation level.The richer the share price information,the longer the expected tenure of corporate executives,the higher the job stability,and the more inclined they are to undertake long-term,high-return but high-risk projects such as innovation,while the rich information on external market transactions also reduces the risk return,reducing the cost of using capital for corporate innovation projects,which in turn enhances the level of corporate innovation.Finally,the effect of stock price information on firms’ innovation level is more significant in the case of higher market share,higher risk level,and larger firms,and decreases in the case of older firms.Thirdly,the study of share price information and the level of corporate social responsibility undertakings reveals the factors that promote the level of corporate sharing in the overall economy.The research results show that,firstly,share price information can enhance the social responsibility undertaking ability of enterprises,which is mainly accomplished by improving the resource transformation efficiency of their own internal management level and external attention.Secondly,investment efficiency and external market attention play a partly mediating role in the relationship between share price information and CSR level.The higher the share price information content,the richer the resources available for CSR management,the higher the conversion efficiency of external attention into corporate reputation resources,and the higher the level of CSR of enterprises.Although social responsibility management in China is still at the stage of "instrumentality"rather than"value",the promotion effect of share price information on the improvement of corporate social responsibility can bring it closer to the stage of "value".However,the promotion effect of share price information on CSR capability can bring it closer to the stage of"value-based".Finally,the promotion effect of share price information on CSR capability is more significant in companies with higher shareholding of institutional investors and funds,larger industry share and better executive salaries,and the effect of such promotion is weakened in companies that actively make public announcements.Compared with existing studies,the possible innovations of this paper are mainly reflected in the following aspects.Innovation in research perspective.Existing studies on stock price information consider that firms are the information dominant party and act as information exporters in the market,and external investors need to collect information about firms to reduce the degree of internal and external information asymmetry.In this study,although firms are information dominant,they can still obtain information from external market investors who are information weak.By mining information resources generated from external market transactions,on the one hand,firms no longer play the role of information exporter,and on the other hand,external investors can increase their understanding of firms through public information generated from external market transactions,which can reduce information risk and information collection threshold.Both can benefit from it.Innovation of research content.The existing research on"high-quality development"mainly focuses on the macro level,promoting the structural reform on the supply side,related industrial policies and the discussion of its economic significance,while at the micro level,it is difficult to explore the high-quality development of enterprises from a certain dimension.In this paper,we start from the vertical vein of influencing the high-quality development of enterprises,and conduct research on the total factor productivity,innovation level and corporate social responsibility of enterprises in three aspects that affect the foundation,driving force and the ability to develop together with the overall economy of the society,so as to provide new ideas for the subsequent improvement of the quality of enterprise development in the micro area is research.Innovation of research methods.The existing literature on the impact of share price information on enterprise development cannot avoid the problem of mutual causality,and this paper makes a breakthrough in the research methodology of this issue.On the one hand,most of the literature chooses the propensity score method combined with the double difference model to exclude the reversible relationship between the two,but the propensity score matching method is prone to the one-to-many situation where the total number of samples is large but the actual sample size involved in matching is small,and only first-order moment matching is done;this paper uses the combination of entropy balance matching and double difference model,which not only avoids the problem of repeated sample matching,but also avoids the problems from the mean,variance and skewness(third-order moments)of the higher-order dimensions for matching,which makes the regression results more reliable.On the other hand,in the two-stage least squares method of covariate selection,most of the literature uses industry means or proximity matching to construct instrumental variables.This paper chooses whether the sample is selected for the CSI 300 index to measure,which minimizes the correlation with the random disturbance term and makes the test results more credible.