The Impact of China’s Stock Market Openness on Firm Innovation

Mwanaidi Mgalla and Hefa Gui

Chapter 104 in Economic Management and Big Data Application:Proceedings of the 3rd International Conference, 2024, pp 1143-1157 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study investigates the impact of China’s stock market openness on corporate firm innovation. China launched Shenzhen-Hongkong and Shanghai-Hongkong Stock Connect programs to allow international investors to trade with domestic stocks. The empirical regression results demonstrate that the firms traded with foreign investors highly benefited from quality patents. In addition, the corporate firms profited from the influence of foreign investors on the firm’s innovation based on gaining financial capital, reducing information asymmetry, and efficient stock market price. Thus, our study provides robustness analysis to clarify the positive relationship between stock market openness on firm innovation.

Keywords: Big Data; Information Management; Economic; Data Applications; Blockchain; E-commerce (search for similar items in EconPapers)
JEL-codes: C63 C8 O14 (search for similar items in EconPapers)
Date: 2024
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