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The Influence of Registration-Based Reform on Innovation Investment Made by Listed Companies

Author(s)

Xiaoying Wu*

Affiliation(s)

Fujian Jiangxia University, Fuzhou, Fujian, China *Corresponding Author

Abstract

The reform of the registration system, a pivotal transformation in China’s securities market, signifies a substantial shift in the landscape of the country’s capital market and has exerted a notable influence on the innovation endeavors of listed companies. Drawing on the data of A-share listed companies spanning during 2016-2023, this study adopts double differences (DID) model to carry out an empirical analysis on how the registration system influences innovation input and its mechanism. Research indicates that, comparison between the reform of the registration system and the approval system has significantly increased the intensity and amount of innovation and R&D investment by listed companies. Mechanism tests reveal that, due to financing constraints being the core transmission pathway, the registration system has led to a decrease in the SA index of listed companies, which in turn has increased their investment in technological and product innovations. The findings of this study not only provide micro-level evidence for the economic consequences of the registration-based system reform but also offer a theoretical foundation for the policy design of capital markets to support the innovative development of the real economy.

Keywords

Reform of the Registration System; Innovation Investment; Financial Constraints; Information Disclosure

References

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