Research On The Impact Of Enterprise Innovation On Investor Sentiment

It is an important function of capital market to discover high-value Enterprises and guide investors to invest in high-value enterprises.Enterprise Innovation is the most effective indicator of enterprise value.Therefore,in the wel-functioning capital market,investors should make positive feedback to the enterprise innovation behavior.But in reality,the market is not efficient,and the existing research does not provide enough evidence for the relationship between corporate innovation and investor sentiment.In particular,most of the existing research focuses on the impact of internal governance on innovation and the capital market effect of innovation,and few studies focus on the impact of innovation on investors’ irrational behavior.From the perspective of enterprise innovation,this paper will explore the impact of enterprise innovat io n behavior on investors’ irrational behavior.The research on this topic will be of practical significance for enterprises to adjust their innovation strategies,perfect financial market regulation and investors’ decision-making.This article first reviews the relevant literature on investor sentiment and corporate innovation activities from the perspective of behavioral finance.Based on the literature review,it clarifies the impact mechanism of corporate innovation on investor sentime nt.Then,taking the listed companies on the Science and Technology Innovation Board from 2019 to 2021 as a research sample,using quantile regression to conduct empirica l analysis to explore the impact of corporate innovat ion on investor sentiment.The empirical results show that: first,there is a significant negative correlation between enterprise innovation investment and investor sentiment,that is,when enterprise innovation investment increases,investors’ negative evaluations of enterprise innovation behavior will increase;Secondly,there is a significant positive correlation between the level of enterprise innovation output and investor sentiment,that is,when the level of enterprise innovation output increases,investors’ positive evaluation of enterprise innovation behavior will increase.The reason why enterprise innovat io n investment has a negative impact on investor sentiment may be that although enterprise innovation investment is crucial to enterprise competitiveness,the hidden high risk can send a dangerous signal to external investors.Based on industry characteristics,the results of enterprise innovation investment are also full of uncertainty,leading to enterprise innovation investment inhibiting the investment sentiment of external investors;The increase in enterprise innovation output not only reduces the uncertaint y of research and development results,but also demonstrates the enterprise’s research and development strength and competitive advantage to external investors,thereby fostering investor sentiment.Based on the research conclusions,this article draws the following three points of inspiration: First,enterprises should have a reasonable internal supervision mechanis m and a complete information disclosure system,supervise the management to make reasonable decisions,improve resource utilization,and integrate internal and external information of the company to guide investors in rational investment,reduce information asymmetry in the market,and reduce moral hazard.Secondly,investors need to ful y learn professional financial knowledge,establish their own knowledge system,improve their professional literacy,maintain rationality,lay a solid foundatio n for future investment behavior,and avoid "herd effect" affecting investment decisions.Third,The government should improve the management system for online commentary,accelerate the establishment of online information security and the launch of online credit platforms,establish a real-name system for the network,regulate network order,purify the network environment,and create a good business market.