Impact Of Stock Liquidity On Enterprise Innovation

Since China began to implement the reform and opening-up policy,China's economy has ushered in a golden period of development,and the results achieved are obvious to all.Gross domestic product(GDP)since 2008 has been came second in the world,but at the same time have to aware of the problem is with the global economic crisis,China's economic growth has begun to slow,to our country economic growth of 6.9%in 2017,in order to search for a new economic growth point,our country put forward supply side structural reform and the development strategy of independent innovation,so innovation has important significance for the country's long-term development.From the enterprise level,innovation as an investment activity can bring long-term value to the enterprise,but innovation itself long return period and the characteristics of income uncertainty management in the process of business decision will not invest in innovation,enterprise management in the process of business decision whether to invest in innovation by what factors influence is a problem worthy of our study.Because innovation is of great significance to the sustainable economic growth of the country and enterprises,and stock liquidity is a factor that can be changed by policies and regulations,this topic has attracted extensive attention from domestic and foreign scholars.In recent years,the study of stock liquidity effect on corporate governance is relatively abundant,and reached some consensus,then,both at home and abroad research conclusion is suitable for Chinese stock liquidity effect on enterprise innovation mechanism is how of,these problems remain to be solved,so it is necessary to explore the stock liquidity effect on enterprise innovation mechanism.This article selects the Shanghai and Shenzhen A-share market in 2003-2017 of 3854 observations as the research object,based on the theory of liquidity premium and scholars at home and abroad and the existing research to verify the negative relationship between stock liquidity and business innovation,and further put forward in non-state enterprises,lower equity concentration and innovation tend to lower the negative correlation relationship between enterprise is more significant.In the empirical part,the basic test of this relationship shows that there is a negative correlation between stock liquidity and innovation output.These results are still robust in the use of alternative subsamples,alternative stock liquidity indicators and alternative econometric methods.In this paper,the bidirectional fixed effect model is used to test the negative correlation between stock liquidity and enterprise innovation.Secondly,with the help of the policy event of non-tradable share reform as an exogenous shock,the possible endogenous problems between stock liquidity and enterprise innovation were eliminated.The negative correlation between stock liquidity and enterprise innovation was further tested by using the two measurement methods of PSM and DID.Thirdly,according to the property right nature,equity concentration degree and innovation tendency of the enterprises in the operation and development,grouping studies were conducted,which proved that the negative correlation between stock liquidity and enterprise innovation was more significant in non-state-owned enterprises,enterprises with low equity concentration degree and enterprises with low innovation inclination.Fourth,the possible mechanism behind the negative correlation was studied,and it was concluded that the transaction type institutional investors may be the reason for the negative correlation.Finally,according to the empirical results,the information disclosure mechanism is improved,the incentives for employees are enhanced,and different policies are adopted for different types of enterprises.In the research process,this paper is different from previous innovations.First,the previous research literature paid more attention to the impact on stock liquidity;The research on innovation is more about the nature of enterprises,government management and governance structure.Chinese scholars seldom combine the fluidity and innovation to study this problem.Secondly,in the analysis,this paper further verifies the heterogeneity of the relationship between stock liquidity and enterprise innovation,as well as the difference in state-owned nature,ownership concentration and innovation inclination,which is of practical significance for a more reasonable analysis of the shareholding structure and specific problems in the corporate governance of China's listed companies.