Innovative efficiency and firm value: Evidence from China

Dongmin Kong, Yiwei Yang and Qin Wang

Finance Research Letters, 2023, vol. 52, issue C

Abstract: In this paper, we investigate the impact of innovative efficiency on a firm's market valuation based on a sample of Chinese listed firms. We find that innovative efficiency prominently contributes to enhancing a firm's market valuation. We examine the important role of securities analysts and institutional investors in conveying information about innovative efficiency and thus increasing firm value. Empirical results show that high-tech industry and intellectual property protection have a positive moderating effect, and financing constraints have a negative moderating effect. Additionally, we find that portfolio returns with different innovative efficiencies can be priced properly by the market.

Keywords: Innovative efficiency; Market valuation; Stock returns (search for similar items in EconPapers)
JEL-codes: G12 G14 O32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007334

DOI: 10.1016/j.frl.2022.103557

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