Technology Innovation And Company Valuation

Science and technology is the primary productive force,and innovation is the primary driving force for development.In recent years,technological innovation has profoundly affected and changed people's lives.Innovation is very important for an enterprise and a country.With the development of economy,China's capital market is becoming more and more standardized,and more and more companies choose to go public in the capital market for financing.The purpose is to raise sufficient funds to develop innovative projects,so that enterprises get better development.How will technological innovation affect the valuation of listed companies?This paper argues that the valuation of listed companies with strong technological innovation ability will be higher.Listed companies with innovative technologies may get more attention from investors,making them more likely to become stars.Investors will judge and predict the future development trend of listed companies based on research and development investment of listed companies,quantity and quality of effective patents and other indicators related to technological innovation.Investors tend to invest in listed companies with strong technological innovation ability.Based on the analysis of relevant theories,this paper puts forward conjectures and hypotheses,and then empirically studies the panel regression method to verify whether the technological innovation of listed companies will have a positive impact on their corporate valuation,which will attract more attention from investors and contribute to the conjecture and hypothesis that the company's stock will become a"star stock".In this paper,the ratio of valid patents and net assets of listed companies is used as the explanatory variable to measure the technological innovation of listed companies,and the price-to-book ratio is used as the explanatory variable to measure the valuation level of listed companies.The results show that the technological innovation has a significant positive effect on the valuation level of listed companies.By introducing the factors of securities analysts and the annual turnover rate of stocks,it is found that the relationship between technological innovation and corporate valuation of listed companies will be affected by these factors.The empirical result shows that China's securities market to a certain extent,encourage technological innovation,promote the reasonable allocation of resources,and securities analysts can reduce investors and listed companies to some extent between the phenomenon of information asymmetry,to a certain extent,rational guide investors to make rational investment.