Market misvaluation and corporate innovation: “Catering” or “risk aversion”?—Empirical evidence from China capital market

IF 1.9 Q2 BUSINESS, FINANCE

China Journal of Accounting Research Pub Date : 2022-09-01 DOI:10.1016/j.cjar.2022.100249

Danglun Luo , Zhanfeng Wu , Jingsi Zhuo , Jianmei He

引用次数: 2

Abstract

This paper tests how market misvaluation affects corporate innovation. Unlike the “catering effect” observed in the US, we find that estimated stock overvaluation in China is strongly negatively associated with corporate innovation, conforming to our “risk-aversion” hypothesis. In China, misvaluation affects innovation via finance and management behavior channels. The effect is more significant in non-state-owned corporations than in state-owned corporations. Stock turnover rate and ownership concentration play moderating roles in the effect. The evidence sheds light on the relationship between market risks and corporate innovation in an emerging market.

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市场错估与企业创新：“迎合”还是“避险”--来自中国资本市场的经验证据

本文检验了市场错估对企业创新的影响。与美国观察到的“迎合效应”不同，我们发现中国的股票估值过高与企业创新呈强烈负相关，符合我们的“风险厌恶”假设。在中国，价值错估通过财务和管理行为渠道影响创新。这种效应在非国有企业中比在国有企业中更为显著。换手率和股权集中度对该效应起调节作用。这些证据揭示了新兴市场中市场风险与企业创新之间的关系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

China Journal of Accounting Research BUSINESS, FINANCE-

CiteScore

4.70

自引率

0.00%

发文量

295

审稿时长

15 weeks

期刊介绍： The focus of the China Journal of Accounting Research is to publish theoretical and empirical research papers that use contemporary research methodologies to investigate issues about accounting, corporate finance, auditing and corporate governance in the Greater China region, countries related to the Belt and Road Initiative, and other emerging and developed markets. The Journal encourages the applications of economic and sociological theories to analyze and explain accounting issues within the legal and institutional framework, and to explore accounting issues under different capital markets accurately and succinctly. The published research articles of the Journal will enable scholars to extract relevant issues about accounting, corporate finance, auditing and corporate governance related to the capital markets and institutional environment.