Research On The Influence Of Market Manipulation On Firm Innovation

The report of the 20 th CPC National Congress and the meeting of the Political Bureau of the CPC Central Committee have also mentioned the importance of innovation for many times.It can be seen that enterprises cannot improve their innovation ability without the healthy development of the capital market.At present,many listed enterprises in our country are also facing the problem of insufficient innovation motivation.Enterprise innovation depends on the healthy development of the capital market,and enterprise innovation investment has the characteristics of high risk and long investment cycle.Along with the deepening of financial system reform in our country,more and more companies take equity as the main financing means.At the same time,in recent years,the illegal phenomenon of the stock market has become more and more fierce,and the suspected phenomenon of closing price manipulation has occurred,which has caused losses to both enterprises and investors.In recent years,there are more and more kinds of market manipulation.Referring to the research of previous scholars,this paper classifies the types of market manipulation in more detail.This paper mainly studies the influence of suspected closing price manipulation in market manipulation on the innovation ability of enterprises.This paper analyzes the influencing channels of closing price manipulation on corporate innovation,uses the intraday trading data of all A-share listed companies from January 1,2015 to December 31,2020,and constructs the closing price identification model to obtain the suspected closing price manipulation data,and empirically investigates the influence of suspected closing price manipulation on corporate innovation ability.And clarify the mechanism of action.Through empirical research,the following important conclusions are drawn:First,the suspected closing price manipulation of listed companies will inhibit the innovation ability in the next year.Second,the suspected closing price manipulation of listed companies will inhibit the innovation ability of enterprises by increasing the cost of equity financing and the degree of management myopia.Thirdly,from the perspective of heterogeneity such as financial constraints,CEO duality,corporate ownership and stock liquidity,we conclude that suspected closing price manipulation has a significant inhibitory effect on corporate innovation ability in companies with high financial constraints.The suspected closing price manipulation has a significant inhibitory effect on the innovation ability of enterprises in the companies with integrated CEO positions.Suspected closing price manipulation can significantly reduce the innovation ability of non-soes;For firms with high stock liquidity,suspected closing price manipulation has a significant inhibitory effect on the innovation ability of firms.The research of this paper has an enlightening role in guiding enterprise managers to carry out innovative investment education,optimizing the trading system,strengthening the screening of market manipulation,and optimizing the financing environment of the capital market.