Exploring the Nexus between Innovation and Corporate Value: An Empirical Analysis of Listed Companies in China

Abstract

In the context of China's dynamic business landscape, understanding the relationship between innovation and corporate value is imperative for sustainable growth and competitiveness. This empirical study investigates the intricate interplay between innovation activities and corporate value among listed companies in China. Utilizing a comprehensive dataset spanning multiple industries and firm characteristics, we employ quantitative methodologies to analyze the impact of innovation on various dimensions of corporate value, including market value, profitability, and long-term sustainability. Our findings reveal significant positive associations between innovation inputs (such as R&D expenditures, technology investments) and corporate value indicators, highlighting the pivotal role of innovation in driving firm performance and market competitiveness. Furthermore, we explore the moderating effects of industry dynamics, firm size, and ownership structure on the innovation-value relationship, shedding light on contextual factors that influence the effectiveness of innovation strategies in enhancing corporate value. The insights garnered from this study offer valuable implications for policymakers, investors, and corporate managers seeking to foster a culture of innovation and leverage it as a strategic asset for sustained business success in the Chinese market.