Utilizing a sample of Chinese A-share listed firms from 2011 to 2020,this study investigates the relationship be-tween innovation outputs and capital market pricing efficiency through the lens of post-earnings announcement drift(PEAD).The study reveals that innovation outputs significantly mitigate PEAD,with the attenuation effect growing stronger as the breakthrough level of the innovation intensifies.Mechanism analysis suggests that the enhancement in capital market pricing efficiency due to cor-porate innovation primarily arises from high innovation-level firms exhibiting sustained earnings and reduced information uncertainty.Heterogeneity tests indicate that the dampening impact of innovation outputs on PEAD predominantly manifests in firms with a sub-stantial number of analyst followings,extensive media coverage,and elevated institutional ownership.Notably,when compared to non-Big Four audited companies,those audited by the"Big Four"manifest a more pronounced effect of innovation output on PEAD.These insights provide theoretical evidence for the enhancement of liquidity and pricing efficiency in China's capital market and es-tablish a scholarly foundation for the high-quality development of the capital market underpinned by innovation.
维普
万方数据