Research On Evaluating Enterprise Innovation And Its Impact On Stock Returns Based On Patent Text

With the comprehensive development of the knowledge economy,innovation has become the primary driving force for economic growth and high-quality development.Whether a company’s innovation can reflect its value and affect the capital market has become an increasingly hot topic among investors.As the most direct proof of a company’s innovation output,patent documents contain the latest and most advanced technology introductions.The reasonable use of patent documents is beneficial to achieve technological breakthroughs and promote high-quality development.The information industry,as a sector with relatively more high-tech enterprises,has a higher output of innovation achievements.Against this background,this paper selects the information industry in China’s A-share market as the research object,and extracts the keywords of patent documents based on the patent text analysis method to measure the level of innovation information load of the company.Firstly,this article is based on the TF-IDF algorithm weighting to measure the innovation information load and to evaluate the innovation information load in the information industry,as well as analyze the evolution of patent themes.From a case analysis,companies with higher innovation information load indicators have higher stock returns and perform better than traditional indicators.From the evolutionary graph,the research hotspots of patent information show a relatively obvious trend of concentration.From the emergence graph,it can be seen that the patent achievements in China’s information industry have changed with the development of the times and the changes in market demand.Secondly,this article explores the impact of innovation information load on stock returns.The empirical results show that innovation information load has a significant positive effect on stock returns,and the regression fit is improved after controlling for variables.The author also obtained the same conclusion through portfolio analysis,which indicates that companies with higher innovation information load have higher stock returns.Investment portfolios that buy long and short based on innovation information load can earn additional excess returns.Thirdly,this article is mainly divided into two main parts: Firstly,based on the Investment Q Theory,the paper explores whether the innovative information load-stock return effect is derived from risk factors.The results show that the innovative information factor is a risk factor and has an effective role in the model.Secondly,correlation and regression analysis of the innovative information factor reveals that it is not a redundant factor,and can explain the risk premium beyond the market risk premium factor,proving again that the innovative information factor is a risk factor that affects stock returns.On the other hand,the paper conducts a GRS test on the innovative information factor and explores pricing efficiency.It is found empirically that the new asset pricing model is more efficient in pricing and better explains stock returns after adding the innovation information factor compared to the original asset pricing model.Finally,Based on the conclusions,the paper puts forward relevant recommendations to strengthen intellectual property protection,improve the national patent trading market,enhance patent information disclosure and capital market supervision,and increase transparency in enforcement.