Does Stock Liquidity Enhance Small and Medium-Sized Enterprises Innovation?--Evidence from the China’s Neeq Market
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For small and medium-sized enterprises with relatively low liquidity, does the improvement of stock liquidity affect enterprise innovation? This paper uses the data of China's NEEQ companies from 2013 to 2017 as samples, introduce the market maker system at the end of 2014 as exogenous variables to construct a quasi-natural experiment, combining propensity score matching and difference-in-difference method to verify. The empirical results show that the increase in stock liquidity is conducive to enhancing the innovation of small and medium-sized enterprises, and the improvement of liquidity of small and medium-sized enterprises with higher stock liquidity is more likely to bring innovation driving force. Therefore, this paper suggests that the government should establish a perfect market transaction system to improve the stock liquidity of small and medium-sized enterprises, so as to further release the innovation vitality of small and medium-sized enterprises.
Stock liquidity, Enterprise innovation, Neeq market, Psm-did