Abstract:This paper selects the listed companies of Shanghai and Shenzhen A-shares from 2008 to 2017 as a sample, and studies the impact of stock price informativeness on enterprise innovation and its mechanism and function environment. The research results show that stock price informativeness has a significant role in promoting enterprise innovation. The higher the stock price informativeness, the more innovation output the company has. The conclusions are still valid after a series of robustness tests, such as transforming the econometric model, changing the metrics of the main research variables, changing the samples, and using the instrumental variable estimates and propensity score matching methods to control endogeneity. Further, research on the mechanism of action shows that the stock price informativeness mainly promotes enterprise innovation by reducing financing constraints, improving operational efficiency and reducing managerial myopia. When studying the role of stock price informativeness in enterprise innovation, it is found that in the state-owned enterprises, the worse the institutional environment, the less attention of analysts and the smaller the scale, the effect of stock price informativeness on corporate innovation is more significant. This paper not only enriches the research on stock price informativeness and enterprise innovation related fields, also has certain enlightenment on how to improve the ability and level of capital market to serve the real economy.

Keywords:stock price informativeness ; corporate innovation ; financing constraints ; managerial myopia