The game mechanism of how liquidity affects Chinese firm innovation
NI Xuanming1, WANG Shunlong1, HUANG Song1, ZHAO Huimin2
1. School of Software & Microelectronics, Peking University, Beijing 100871, China; 2. School of Business, Sun Yat-Sen University, Guangzhou 510275, China
Abstract：This paper built a game theory model to discuss how liquidity affects Chinese firm innovation from the perspective of information asymmetry and goal incompatibility. The study found liquidity affects Chinese firm innovation in two ways:Threat of takeover and different type of shareholders. In terms of threat of takeover, liquidity would harm innovation activities. In terms of type of investors, liquidity's effect differs from short-term investors and shareholders. The existence of short-term investors will make liquidity impede innovation. When firm's main investors are shareholders, influence on innovation from liquidity is depended on whether improvements of firm's valuation by rising innovation input is more than the reduction through decreasing short-term return. Taking characteristics of state-owned and non-state-owned enterprises into account, we found that the stock liquidity of private company impedes its innovation and the stock liquidity of state-owned company boosts its innovation. Then we take Chinese stock market as a "natural lab" to test the conclusion of theoretical analysis with fixed effect (FE) model. The result of empirical test is similar with conclusion of theoretical analysis and reinforces the result of game theory model.
倪宣明, 王顺龙, 黄嵩, 赵慧敏. 股票流动性影响我国企业科技创新的博弈机制[J]. 系统工程理论与实践, 2019, 39(12): 3048-3060.
NI Xuanming, WANG Shunlong, HUANG Song, ZHAO Huimin. The game mechanism of how liquidity affects Chinese firm innovation. Systems Engineering - Theory & Practice, 2019, 39(12): 3048-3060.
[1] 袁博, 刘文兴, 张鹏程. 知识产权保护能力对重大科研项目技术创新影响的权变模型[J]. 系统工程理论与实践, 2014, 34(11):2965-2973.Yuan B, Liu W X, Zhang P C. The influence of the protection ability of intellectual property on large scientific project technology innovation:A contingent model[J]. Systems Engineering-Theory & Practice, 2014, 34(11):2965-2973. [2] 刘可静. 技术创新自主知识产权管理与合同效用[J]. 管理评论, 2003(2):17-20.Liu K J. On the management of and the use of intellectual property contracts for proprietary intellectual property of technology innovation[J]. Management Review, 2003(2):17-20. [3] 吴祖光, 万迪昉, 王文虎. 税收优惠方式对研发投入激励效果的实验研究[J]. 系统工程理论与实践, 2017, 37(12):3025-3039.Wu Z G, Wan D F, Wang W H. Experimental research on the incentive effective of different tax preference policy for R&D investment[J]. Systems Engineering-Theory & Practice, 2017, 37(12):3025-3039. [4] 孙博, 刘善仕, 姜军辉, 等. 企业融资约束与创新绩效:人力资本社会网络的视角[J]. 中国管理科学, 2019, 27(4):179-189.Sun B, Liu S S, Jiang J H, et al. The financial constraints and firm innovation:From the perspective of human capital network[J]. Chinese Journal of Management Science, 2019, 27(4):179-189. [5] 杨广青, 汪蓉, 王浣尘. 债务融资、技术创新与寡头垄断竞争[J]. 系统工程理论与实践, 2007, 27(8):75-83.Yang G Q, Wang R, Wang H C. Debt financing, technology innovation and oligopoly competition[J]. Systems Engineering-Theory & Practice, 2007, 27(8):75-83. [6] 漆艳茹, 刘云, 侯媛媛. 基于专利影响因素分析的区域创新能力比较研究[J]. 中国管理科学, 2013, 21(S2):594-599.Qi Y R, Liu Y, Hou Y Y. Empirical research about the influence factors of China's patent application activities[J]. Chinese Journal of Management Science, 2013, 21(S2):594-599. [7] 姚东旻, 李三希, 林思思. 老龄化会影响科技创新吗——基于年龄结构与创新能力的文献分析[J]. 管理评论, 2015, 27(8):56-67.Yao D M, Li S X, Lin S S. Aging affects innovation?-An analysis based on literature[J]. Management Review, 2015, 27(8):56-67. [8] 孙晓华, 郭旭, 王昀. 政府补贴、所有权性质与企业研发决策[J]. 管理科学学报, 2017, 20(6):18-31.Sun X H, G X, Wang Y. Government subsidy, ownership, and firms' R&D decisions[J]. Journal of Management Sciences in China, 2017, 20(6):18-31. [9] 贺灵, 单汨源, 邱建华. 创新网络要素及其协同对科技创新绩效的影响研究[J]. 管理评论, 2012, 24(8):58-68.He L, Shan M Y, Qiu J H. A study of the impact of innovation network elements and synergy on technology innovation performance[J]. Management Review, 2012, 24(8):58-68. [10] Porter M E. Capital disadvantage:America's failing capital investment system[J]. Harvard Business Review, 1992, 70(5):65-82. [11] Bushee B J. Do institutional investors prefer near-term earnings over long-run value?[J]. Contemporary Accounting Research, 2001, 18(2):207-246. [12] 雷倩华, 柳建华, 龚武明. 机构投资者持股与流动性成本——来自中国上市公司的经验证据[J]. 金融研究, 2012(7):182-195. [13] 孔东民, 孔高文, 刘莎莎. 机构投资者、流动性与信息效率[J]. 管理科学学报, 2015, 18(3):1-15.Kong D M, Kong G W, Liu S S. Institutional investors, liquidity, and information efficiency[J]. Journal of Management Sciences in China, 2015, 18(3):1-15. [14] Stein J C. Takeover threats and managerial myopia[J]. Journal of Political Economy, 1988, 96(1):61-80. [15] Stein J C. Efficient capital markets, inefficient firms:A model of myopic corporate behavior[J]. The Quarterly Journal of Economics, 1989, 104(4):655-669. [16] Kyle A S, Vila J L. Noise trading and takeovers[J]. The RAND Journal of Economics, 1991:54-71. [17] Shleifer A, Summers L H. Breach of trust in hostile takeovers[M]//Corporate takeovers:Causes and consequences. Chicago:University of Chicago Press, 1988:33-68. [18] Chemmanur T J, Tian X. "Preparing" the equity market for adverse corporate events:A theoretical analysis of firms cutting dividends[J]. Journal of Financial and Quantitative Analysis, 2012, 47(5):933-972. [19] Fang V W, Tian X, Tice S. Does stock liquidity enhance or impede firm innovation?[J]. The Journal of Finance, 2014, 69(5):2085-2125. [20] Maug E. Large shareholders as monitors:Is there a trade-off between liquidity and control?[J]. The Journal of Finance, 1998, 53(1):65-98. [21] Kahn C, Winton A. Ownership structure, speculation, and shareholder intervention[J]. The Journal of Finance, 1998, 53(1):99-129. [22] Faure-Grimaud A, Gromb D. Public trading and private incentives[J]. Review of Financial Studies, 2004, 17(4):985-1014. [23] Edmans A. Blockholders and corporate governance[J]. Annual Review of Financial Economics, 2014, 6(1):23-50. [24] Bharath S T, Jayaraman S, Nagar V. Exit as governance:An empirical analysis[J]. The Journal of Finance, 2013, 68(6):2515-2547. [25] 王谨乐, 史永东. 机构投资者、高管变更与股价波动[J]. 管理科学学报, 2018, 21(7):113-126.Wang J L, Shi Y D. Institutional investors, top management turnover and the fluctuation of stock price[J]. Journal of Management Sciences in China, 2018, 21(7):113-126. [26] Edmans A, Fang V W, Zur E. The effect of liquidity on governance[J]. The Review of Financial Studies, 2013, 26(6):1443-1482. [27] 杜金岷, 吕寒, 吴非. 股票流动性、股权分置改革与企业创新[J]. 产经评论, 2017, 8(6):34-44.Du J M, Lü H, Wu F. Stock liquidity, split share structure reform and enterprise innovation[J]. Industrial Economic Review, 2017, 8(6):34-44. [28] 胡勇, 李意, 乔元波. 股票流动性与公司创新——基于创新行业的实证分析[J]. 投资研究, 2016, 35(10):97-110.Hu Y, Li Y, Qiao Y B. Liquidity of stock and corporate innovation-Empirical research based on innovative industries[J]. Review of Investment Studies, 2016, 35(10):97-110. [29] 闫红蕾, 赵胜民. 上市公司股票流动性对企业创新的促进作用[J]. 经济理论与经济管理, 2018(2):98-112.Yan H L, Zhao S M. Stock liquidity's enhancement on firm innovation[J]. Economic Theory and Business Management, 2018(2):98-112. [30] 曹阳. 股票流动性是否促进研发创新——基于我国医药板块的研究[J]. 金融评论, 2015, 7(6):81-90.Cao Y. Does stock liquidity encourage firm innovations-Study based on China pharmaceutical sector[J]. Chinese Review of Financial Studies, 2015, 7(6):81-90. [31] 王鹤霖. 中国制造业上市公司股票流动性对其R&D投入影响的实证研究[J]. 中国物价, 2018(2):67-70. [32] 冯根福, 刘虹, 冯照桢, 等. 股票流动性会促进我国企业技术创新吗?[J]. 金融研究, 2017(3):192-206. Feng G F, Liu H, Feng Z Z, et al. Does stock liquidity enhance technological innovation?[J]. Journal of Financial Research, 2017(3):192-206. [33] 万树平. 上海股票市场流动性的度量与影响因素实证分析[J]. 系统工程理论与实践, 2006, 26(2):1-9. Wan S P. Measurement and effect factors empirical research on stock liquidity in Shanghai stock exchange[J]. Systems Engineering-Theory & Practice, 2006, 26(2):1-9. [34] Amihud Y, Mendelson H. Asset pricing and the bid-ask spread[J]. Journal of Financial Economics, 1986, 17(2):223-249. [35] Korajczyk R A, Sadka R. Are momentum profits robust to trading costs?[J]. The Journal of Finance, 2004, 59(3):1039-1082. [36] 潘宁宁, 朱宏泉, 陈林. 股票流动性与资产流动性的相关性——理论与实证分析[J]. 系统工程理论与实践, 2011, 31(4):710-720.Pan N N, Zhu H Q, Chen L. Stock liquidity and asset liquidity-Theory and empirical analysis[J]. Systems Engineering-Theory & Practice, 2011, 31(4):710-720. [37] Lamont O, Polk C, Saá-Requejo J. Financial constraints and stock returns[J]. The Review of Financial Studies, 2001, 14(2):529-554.
2019, Vol. 39 
