Does Chinese Capital Market Care About Green Technology Innovation?

There are typical double externalities in green technology innovation activities: the positive externalities of technology spillover and the negative externalities caused by environmental pollution are higher than the negative externalities of polluters’ benefits,making profit-seeking enterprises reluctant to take the initiative to engage in green technology innovation activities.The capital market is a broad financing platform and can make full use of the price discovery function to incentivize enterprises to carry out green technology innovation activities.On this basis,this paper explores whether the capital market pays attention to green technology innovation,provides empirical evidence of the pricing of the capital market for green technology innovation,and also clarifies the role of the capital market in environmental governance to help the high-quality development of the economy.This paper firstly combs the domestic and foreign related literature of green technology innovation,defines the relevant concepts and theoretical basis,and analyzes the market reaction mechanism of green technology innovation,and then gives a basic description of the development status of green technology innovation at home and abroad.In the empirical aspect,this paper takes the green patent authorization event as the starting point,and uses the single-factor model,the three-factor model and the five-factor model to empirically test the market response to the green patent authorization event based on the event research method.The research results show that my country’s capital The market pays insufficient attention to green technology innovation events at the enterprise level and fails to provide effective incentives.Immediately afterwards,this paper conducts a heterogeneity test and finds that firms in environmentally sensitive industries have better market returns on the day of granting green patents,while there is no significant difference in the nature of firm ownership.On this basis,this paper deeply excavates the influencing factors of the market response from the perspective of internal and external enterprises,and points out that the larger the enterprise scale,the stronger the incentive of the capital market for green patent authorization events;political connections will not affect the green patent authorization events.Accumulated abnormal returns;the stronger the profitability of the company,the capital market will pay attention to its green patent authorization event,but this reaction is negative.In terms of external attention,in the research sample period,institutional investors and analysts have not paid sufficient attention to corporate green technology innovation.Finally,this paper puts forward corresponding countermeasures and suggestions for the Chinese government and financial regulators to better promote the development of enterprise green technology innovation.