An Empirical Study On The Impact Of Technological Innovation On The Market Value Of New Energy Sector Listed Companies

Nowadays and in the coming decades, energy development strategy in China isfacing a major challenge. With the modernization of China, energy demand willsignificantly expand, and our country will soon become the world’s largest energyconsumer. Therefore, there will be a great challenge to the national energy security.With the shortage of world’s energy and resources increasingly severe, theexploitation and utilization of renewable energy have been a hot topic among us.Scientific and Technological (S&T) innovation capacity, which is increasingly crucialin the energy reform, has been not only the key factor in the implementation ofnational energy development strategy and ensuring national energy security, but alsothe fundamental guarantee for the renewable energy companies to maintainlong-term development in the fierce market competition.Therefore, for the listed companies in renewable energy board, it is profound toresearch the impact of their technology innovation input on the firm market value, toevaluate the correlations of different kind of the Research and Development (R&D)input and firm market value, and to compare the efficiency of technology innovationinput in different types of companies. It will be helpful to formulate policy fornational renewable energy industrial development, to lead companies into taking thestrategy of technology innovation, forming and maintaining the core competitiveness,and obtaining economic benefits and value appreciation.The contents of this current paper are as follows: First of all, based on the reviewof a lot of previous studies，author introduced the basic theory, which included CoreCompetence Theory, Signaling Theory and Contingency Theory,and intended todescribe the inner mechanism that why technology innovation input is in thepromotion of the market value, and some factors can be in the regulation of thecorrelation between them. Thus, some assumptions were proposed. Then, this currentpaper focused on ninety-seven listed companies in renewable energy board ofShanghai and Shenzhen A stock markets. And with regression method, author testedthe influence of R&D input on market value and the factors of sale scope andownership in the adjustment of the correlation between them, which was studied byEviews6.0and Excel on the basis of adjusted Griliches theoretical model.Through the analysis above, some conclusions were made: To some extent, company market value can be promoted by technological innovation investment;Sometimes, the promotion effect shows short-term and lag; The correlation betweentechnology innovation input and market value certainly can be adjusted by the bothfactors of sale scope and ownership, non-state companies have more advantages overstate ones of the value conversion of R&D input, and the promotion effect on marketvalue in national-sale companies are more significant than in global-sale ones. Finally,based on the conclusions above, the paper offered a few words of advice:(1) Moresignificant should be taken on companies’ independent innovation capability.(2)Companies should be lead to increase their investment in R&D program and to paymore attention to the effects of short-term and lag.(3) Companies should focus farmore on the factors which have an influence on the value relevance of R&D input.