Establishment of the Star Market and Innovation of Main Board Firms: Based on the Transmission Path of Competition
Jiang Chengxin；Liu Bin；Huang Kun；
The Star Market has lowered the listing threshold for innovative companies. Literatures show that going public can help firms raise capital and thereby enhance their innovation capabilities. At the same time，competition has an important impact on innovation: On the one hand， it will reduce the monopoly rent of old innovations and weaken the innovation capabilities of firms，that is，the Schumpeter effect；on the other hand，it will increase the incremental profits of new innovations and enhance the willingness of firms to innovate，that is，the escape-competition effect. Therefore， can the Star Market enhance the overall innovation competition in the market，and how will it affect the innovation investment of listed companies in other boards？This paper conducts an empirical study on this.Based on the data of A-share listed companies from 2015 to 2022，this paper takes the establishment of the Star Market as an exogenous event，uses text similarity to identify treatment intensity，and constructs a DID model for empirical testing.The results show that:（1）The Star Market enhances the competitive pressure of main board firms in the field of innovation and prompts them to increase innovation investment.（2）The more competition in innovation increases，the more investment in innovation increases，indicating that innovation competition is the transmission path.（3）The effect of the Star Market in promoting innovation investment depends on whether main board firms are in a leading position in technology，but is not affected by their financing constraints，supporting the escape-competition effect rather than the Schumpeter effect.The contributions of this paper are as follows:（1）It expands the scope and path of the Star Maret's role in promoting corporate innovation from the perspective of innovation investment of listed companies in other boards and innovation competition.（2）It extends the micro theoretical logic that the listing of companies affects the decision of competing companies to the macro reform of the capital market system，and reveals the competition-based interaction between capital markets at different layers.（3）It provides empirical evidence for the debate between the“Schumpeter effect”and the“escape-competition effect”in the relationship between competition and corporate innovation from the perspective of changes in capital market threshold.
