The Impact Of Listing Switch On Innovative Performance For High-tech Enterprises

Many high-tech enterprises in the early stage of development can’t meet exchange-traded market listing standards,thus they can only choose to list on the NEEQ.Because of the position for small and micro enterprises,it has been gradually difficult for the NEEQ to meet high-tech enterprises’ financing needs as they grow up.Lacking of a listing switch system between the exchange market and the OTC is a huge defect to support these high-tech enterprises.Based on the data of high-tech enterprises trading on the NEEQ and taking financial constraints as entry point,this paper studies whether listing switch can promote innovative performance and the underlying mechanism behind this.The empirical results show that the high-tech enterprises’ listing switch to exchange market can promote their innovative performance significantly.Further mechanism test shows that listing switch would promote innovation through three channels—improving stock liquidity,strengthening credit level and stabilizing working capital.These results have important implications for establishing a listing switch system between the NEEQ and the exchange market,including rationalizing the planning of China’s multi-level capital market system construction and providing empirical evidence about the development of financial market promoting economic growth.