Stock Liquidity and Firm Innovation: A Comparative Study Based on the Perspective of Firm Size

Abstract

At present, there are serious differences in the study of the impact of stock liquidity on enterprise innovation. Taking A share listed companies as the research object, this paper classifies the relationship between stock liquidity and enterprise innovation from the perspective of enterprise size. The empirical study finds that the liquidity of the large enterprises in the A stock market will promote the innovation of the enterprises, while the small and medium enterprises are hindered. Finally, suggestions are made from the supervision and legislation of the information disclosure, the rational release of liquidity and the increase of the proportion of institutional investors.