| After more than 30 years of development,China’s capital market has now entered a new stage of building a modern capital market with Chinese characteristics.The 19 th National Congress of the Communist Party of China stressed the need to deepen the reform of the regulatory system and optimize the efficiency of capital market resource allocation.In this context,through the implementation of the inquiry and supervision policy,the stock exchange has shifted the focus of supervision from pre-audit to post-supervision,and gradually become a front-line regulator to improve the quality of information disclosure in the capital market,and a new supervisor to maintain the order of the capital market.Exchange inquiry regulation plays a vital role in the improving transparency of corporate information disclosure,the compliance of accounting policy selection,the rationality of corporate investment decisions,and the prevention of major financial risks.As an important measure for the transformation of the capital market supervision concept,the academic and practical circles have widely paid attention to the regulatory utility of the inquiry letter,and explored whether the inquiry can really find out and solve all the problems that listed companies intend to hide.Under such strong external attention,it will also produce regulatory pressure on listed companies,affect investors’ expectations and judgments of companies,and then affect the decisions of company managers.Innovation as the core driving force for the development of the company,is the key to improve competitiveness and market position.Enterprises’ innovation will be affected by both internal and external environment.Exchange inquiry letters,as a kind of strong external supervision way,may affect the external environment and internal operating conditions,further influence enterprises’ innovation decisions.Some scholars have found that financial report inquiry letters can send unfavorable signals to the market,leading to a decline in the company’s stock price,frequent management changes,and worsening financing constraints.In this case,managers have to bear both the pressure of inquiring about financial reports and the pressure of accountability from the company’s shareholders and external investors.Therefore,they may be unable to make rational judgments and decisions.In order to reduce the risk of the company and themselves,managers will choose to invest funds in short-term profitable projects,resulting in increased short-termism and reduced willingness to innovate.Under the influence of this negative signal,investors’ trust in the company is reduced,and the reputation of the company and its managers is damaged.On the basis of the existing inquiry pressure,managers have to bear the pressure of the company’s shareholders and external investors.Under the pressure of accountability,it is very likely that it is impossible to make rational judgments and decisions,which will lead to an increase in the company’s operating risks.In addition,in order to protect their own interests,external investors will charge higher financing premiums to listed companies,which leads to the improvement of financing constraints,the reduction of available funds,and the reduction of enterprise innovation.Based on the above analysis,this thesis discusses whether financial report inquiry letter will have an adverse impact on enterprise innovation,and further analyzes the specific impact path and how to improve enterprise innovation.This thesis takes the signaling theory and the asymmetric information theory as the theoretical basis,and takes the data of A-share listed companies in China from 2016 to 2021 as the research sample to explore the relationship between financial report inquiry letters and enterprise innovation.Verify whether the characteristics of the financial report inquiry letter will have further regulatory effects;Examine the mediating effect of financing constraints and management myopia;Conduct inspection by sector and industry;The moderating effects of property rights,management shareholding and analyst concerns were tested.The empirical results show that :(1)there is a negative correlation between the financial report inquiry letter and enterprise innovation;(2)Repeated receipt and delayed return of listed companies will lead to the further reduction of enterprise innovation investment,while financial report inquiry letters related to "research and development" will promote innovation investment by enterprises;(3)Financing constraints and management myopia play a part of the mediating effect;(4)In SME board、GEM board and high-tech enterprises,,financial report inquiry letter is negatively correlated with enterprise innovation;(5)Management shareholding can effectively alleviate the negative correlation between inquiry and innovation;(6)In non-state-owned enterprises,the financial report inquiry letter is negatively correlated with the enterprise innovation;(7)Analyst concern will exacerbate the adverse impact of financial report inquiry on innovation.Based on the above conclusions,this thesis puts forward the following suggestions:Enterprises should strengthen the quality of accounting information disclosure,pay attention to the exchange inquiry letter;Strengthen the supervision of financial report research and development information disclosure,and alleviate the problem of information asymmetry;Emphasize enterprise innovation,expand financing channels,and ensure R&D capital investment;Build a sound executive incentive mechanism,cultivate the concept of managers valuing innovation,and achieve long-term sustainable development of the company.Analysts should improve their professional quality,objectively analyze the content of inquiry letters,pay attention to the long-term performance of enterprises,ensure the objectivity and independence of analysis,and promote the innovation of enterprises.The above research enriches the research literature on the economic consequences of financial report inquiry letters,improves the research system framework of inquiry supervision,provides the direction for the stock exchange to strengthen the key supervision in the future,and is of great significance to further improve the vitality of the capital market and improve the level of enterprise innovation. |
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