An Empirical Study On The Effect Of Enterprise Innovation On Abnormal Volatility Of Stock Price

Currently,major countries around the world have attached great importance to the development opportunities brought about by the new round of technological revolution and industrial transformation.China is also vigorously encouraging enterprises to carry out innovation activities at this stage.However,due to the existing defects in China’s relevant systems,there is a lag in the disclosure of relevant policies at various stages of innovation.What impact will the economic consequences of the investment or output stages of enterprise innovation have on the securities market? Specifically,at the enterprise level,if a sound corporate governance system is established,can enterprise innovation activities constrain opportunistic behavior of managers,thereby weakening the information asymmetry phenomenon inside and outside the enterprise? From various perspectives outside the enterprise,can the attention of securities analysts effectively supervise the management? Or fully mining report information to enhance investor investment information?In response to the above issues,this article starts from the perspective of the risk of abnormal stock price fluctuations,using A-share listed companies from 2011 to 2020 as data sources,and studies whether the risk of abnormal stock price fluctuations will be affected by enterprise innovation activities from the micro level of internal and external enterprises.This study is based on four theoretical methods: information asymmetry theory,signal transmission theory,principal-agent theory,and effective market theory,and delves into the investment in enterprise innovation The impact of the output stage on the risk of abnormal stock price fluctuations,while introducing corporate governance level and securities analyst attention as moderating variables,further studies the internal and external influencing factors of enterprise innovation activities on the risk of abnormal stock price fluctuations.The results of this study indicate that:(1)there is a positive correlation between the stage of enterprise innovation investment and the risk of abnormal fluctuations in stock prices;(2)There is a negative correlation between the stage of innovation output and the risk of abnormal fluctuations in stock prices;(3)Adding adjusting variables,it is found that the level of corporate governance significantly weakens the positive correlation between the investment stage of enterprise innovation and the risk of abnormal stock price fluctuations;(4)Similarly,considering the attention of securities analysts as a path of external transmission,it can also be found that between the company’s innovation investment stage and the risk of abnormal fluctuations in stock prices,the attention of securities analysts can significantly reduce the company’s innovation investment stage and abnormal fluctuations in stock prices.Based on the above conclusions,this article proposes relevant policy recommendations from three perspectives:government level,enterprise level,and market investors.From the government level,it is necessary to guide enterprises to pay attention to the rationality of innovation activities;We should strengthen the relevant policy formulation of the disclosure system at the innovation stage and strengthen the supervision of information disclosure;Investors should also be guided to make rational investments;At the same time,strengthen the protection of intellectual property rights.From the perspective of enterprises,it is necessary to further improve their own governance level;Develop innovative activities more rationally;And do a good job in screening and training enterprise managers.As a market investor,the most important thing is rational investment.The research in this article helps us better understand the economic consequences of enterprise innovation and promote the healthy development of China’s securities market.