The Impact Of Innovation On Enterprise Value

Innovation is the driving force and source of contemporary economic development.Innovation is the foundation for enterprises to survive and develop in the increasingly fierce market economy environment.In recent years,the state has been increasing efforts to encourage independent research and development acticities of enterprises,R&D investment of listed companies has repeatedly hit new highs,enterprises as the main body of modern market economy innovation,through technological innovation to enable enterprises themselves to have core competitiveness in a changing market environment,improve production efficiency,to save costs and enhance the value of enterprises.At the same time,enterprises are also facing greater perational pressure,because R&D innovation has a long R&D cycle,a large amount of R&D funds and uncertainty in the R&D process.Therefore,whether the increase in R&D investment can steadily improve the value of listed companies in China is the focus of this paper.This paper takes the Gem listed companies in China from 2014 to 2020 as the research sample,and takes the relationship between R&D investment intensity and enterprise value as the research object.This paper first expounds the research background,significance,ideas and methods,and summarizes the driving factors of enterprise value and the significance of innovation,respectively.Then it reviews,summarizes and briefly reviews the literature on innovation and enterprise value.According to the combination of theoretical analysis and actual situation,research hypotheses are proposed.On this basis,OLS regression is used to explore the specific relationship between innovation and enterprise value.The regression results show that inn ovation has a significant positive correlation with enterprise value.At the same time,this paper conducts a group study on the samples to examine the impact of innovation on enterprise value under different enterprise natures and different regional economic environments.Secondly,this paper analyzes the transmission mechanism of the impact of innovation on enterprise value.It is found that the intensity of R&D investment is significantly positively correlated with the proportion of corporate institutional ownership(except for the largest shareholder),and the proportion corporate institutional ownership also has a significant positive correlation with corporate value.lt is confirmed that the increase of R&D investment will cause the increase of institutional ownership and promote the improvement of enterprise value.Based on the above theoretical analysis and empirical results,China’s listed companies are actively participating in R&D and increasing R&D investment.Most investors in the market also recognize that increasing R&D investment will enhance enterprise value.However,the information disclosure of enterprises on the transformation of their R&D investment results is not detailed,and there is still the risk of information asymmetry.In this regard,the author proposes to improve the information disclosure of R&D activities and strengthen the audit governance of listed companies.At the same time,optimize the policy,and give the prospect of enterprise R&D support in many aspects.