Research On The Impact Of Stock Mispricing On Innovation Of Small And Medium-sized Enterprises From The Perspective Of Life Cycle

Enterprise innovation needs constant capital investment,but it is still a common phenomenon in current economy and society that financing is difficult and expensive for SMEs.Rational use of the mispricing in the stock market can alleviate the financing constraints faced by SMEs,thereby reducing the financing costs of SMEs and promoting their innovation.Since SMEs in different life cycle stages face different financing constraints,it is of great significance to clarify the influence and channel of stock market mispricing on the innovation of SMEs in different life cycle stages to enhance their equity financing ability and improve their innovation and specialization level.This paper mainly analyzes and discusses the impact and mechanism of stock market mispricing on SME innovation based on the perspective of enterprise life cycle.First of all,it sorts out the relevant domestic and foreign literature on enterprise innovation,mispricing,and enterprise life cycle;on this basis,it analyzes the impact of stock market mispricing on enterprise innovation and the relevant theory of the relationship between stock mispricing and enterprise innovation affected by enterprise life cycle,and puts forward research hypotheses.Then,based on the above literature review and theoretical analysis,taking small and medium-sized enterprises as the research object,selecting 361 companies listed on the GEM from 2010 to 2020 as the research sample,and empirically analyzing the impact of stock market mispricing on corporate innovation,the empirical results show that the regression coefficient of stock mispricing in the total sample is significantly positive;on this basis,conduct a channel analysis on how stock market mispricing affects corporate innovation,and explore how stock market mispricing affects corporate innovation through equity financing channels.The empirical results show the existence of equity financing channels that stock mispricing affects firm innovation.Next,from the perspective of enterprise life cycle,the moderating effect model is used to analyze the relationship between stock mispricing and enterprise innovation,and to explore whether there are differences in the impact of stock mispricing of small and medium-sized enterprises in different life cycle stages on enterprise innovation.The empirical results show that the regression coefficients of stock mispricing in sub-samples of different life cycle stages are significantly positive,and the regression coefficient of mispricing in growth-stage subsamples is the largest;on this basis,conduct a channel analysis on how the stock mispricing of small and medium-sized enterprises in different life cycle stages affects corporate innovation,explore whether it affects corporate innovation through equity financing channels,and whether there are differences in the effect of affecting corporate innovation through equity financing channels.The empirical results show that there are differences in equity financing channels in the sub-samples of different life cycle stages,and the mispricing of stocks in the sub-samples of the growth period mainly indirectly affects corporate innovation through equity financing channels.the mispricing of stocks in the mature period sub-sample and the turbulent period sub-sample can directly affect corporate innovation,and can also indirectly affect corporate innovation through equity financing channels.Finally,summarize the main conclusions of this paper,point out the shortcomings of this study and the direction of future improvement.According to the empirical results,the research conclusions drawn in this paper have four aspects.(1)The mispricing of SMEs in the stock market,especially when the stock price is overvalued,is conducive to promoting corporate innovation;(2)The mispricing of SME stocks mainly affects corporate innovation through equity financing channels,specifically when the stock prices of SMEs are overvalued,It can raise more funds for corporate innovation through lower-cost equity financing,thereby promoting corporate innovation;(3)Small and medium-sized enterprises in different life cycle stages have different promotion effects on corporate innovation when stock prices are overvalued.The role of small and medium-sized enterprises in the growth stage is the strongest;(4)There are differences in the effect of stock mispricing of small and medium-sized enterprises in different life cycle stages affecting corporate innovation through equity financing channels,and the mispricing of small and medium-sized enterprises in the growth stage affects corporate innovation through equity financing channels the most obvious effect.Therefore,it is necessary to guide small and mediumsized enterprises to rationally use the mispricing of the stock market for financing according to their own development stage,so as to promote the innovation and development of enterprises.