Is the Disclosure of Innovation Textual Information an Unilateral Act by the Company
The importance of innovation activities is self-evident,but there exists a considerable level of information asymmetry both inter-nally and externally within companies regarding innovation activities,necessitating effective disclosure of innovation information by com-panies.Textual information related to innovation activities not only provides a detailed reflection of the progress of such activities but also elucidates a company's future plans for innovation,thereby reducing the information asymmetry between internal and external stakehold-ers concerning innovation activities and enhancing market pricing ef-ficiency with regard to a company's innovation activities.Only when the value of innovation activities is accurately reflected in the compa-ny's overall value can it incentivize companies to continue engaging in innovation activities and enhance their innovation capabilities.The positivity of tone,as a crucial characteristic of textual information,has been empirically proven to serve as a signaling mechanism,reflecting a company's attitude towards its operational activities.Nonetheless,isolated incidents of problematic disclosure of innovation textual information in recent years have diminished investors'trust levels.Furthermore,the presence of various professional terminologies within innovation textual information has reduced investors'ability to interpret information within the market effectively.In light of these circumstances,this study explores whether the market can provide positive feedback to companies based on the positivity of tone in their innovation textual information,thereby enhancing company value.This paper examines the impact of the positivity of tone in innovation textual information on company value from the perspective of inves-tors,using Chinese A-share listed companies from 2009 to 2019 as the research sample.The study reveals that although the positivity of tone in innovation textual information tends to accurately reflect a compa-ny's innovation activities,it does not receive positive feedback from the market,as evidenced by a significant negative correlation with com-pany value.This phenomenon arises from both market distrust and a lack of interpretive abilities within the market.The paper further inves-tigates how to enhance the disclosure value of the positivity of tone in innovation textual information from four perspectives:the relationship between a company's disclosed R&D investment and patent output,investors'active collection of innovation information,the intermedi-ation of innovation information by the capital market,and the level of government protection of intellectual property rights.Firstly,strict reg-ulation of research and development(R&D)investment and the number of patents generated is beneficial in enhancing market trust and under-standing of the sentiment orientation in innovation textual information.The more significant the R&D investment or output of patents,the higher the level of trust and interpretative ability in the market towards the sentiment orientation in innovation textual information.Secondly,when investors focus on a company's innovation activities,it not only increases market trust in the innovation textual information but also,by improving interpretative abilities,allows the value of the innova-tion textual information to be manifested.Furthermore,the attention of analysts,serving as intermediaries of capital market information,on innovation activities can only increase market trust and interpreta-tive abilities.Lastly,the level of government protection of intellectual property rights enables companies to confidently disclose innovation information that accurately reflects their innovation activities,thereby aiding in enhancing market understanding and trust in why the compa-ny holds an optimistic attitude towards innovation activities.This paper's main contributions may be reflected in the following five aspects:First,it provides a valuable supplement to the study of textual information.Existing research predominantly uses textual informa-tion from annual reports,management discussions and analyses,per-formance briefings,and similar sources as samples.In contrast,this paper focuses on innovation textual information from annual reports to explore the value of companies'innovation information disclosure behavior,thus expanding upon existing research.Second,it offers a new research perspective on the relationship between innovation in-formation and market value.While previous studies have confirmed that innovation numerical information enhances company value,this paper investigates the disclosure value of innovation information from a textual information perspective,providing a fresh research angle on the value of innovation information.Third,it lays a theoretical foundation for optimizing companies'innovation textual information disclosure strategies and offers new reference points for enhancing the effectiveness of such disclosures.Empirical results indicate that R&D investment and patent output,actively collected innovation in-formation from investors,innovation information intermediated by the capital market,and the level of government protection of intellectual property rights all contribute to increasing market trust and interpreta-tion of companie's innovation textual information,thereby enhancing the effectiveness of innovation textual information disclosure.Fourth,this study provides a new perspective for enhancing companies'in-novation capabilities in China.Existing research primarily focuses on the company level,exploring how to promote corporate innovation through financial arrangements,government support,and improved corporate governance.Given that positive market feedback on inno-vation information can incentivize companies to continue innovative activities,this paper discusses how enhancing the value of innovation textual information provides a new perspective for motivating compa-nies to enhance their innovation capabilities.
Innovation Text InformationInterpretationTrustCom-pany Value
万方数据
维普
