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The new Securities Law, information disclosure quality and corporate innovation

Author

Listed:
  • Zhang, Xiaoping
  • Zheng, Peng
  • Fu, Yuhan

Abstract

This paper investigates the impact of the newly revised Securities Law in 2020 on the output of corporate innovation achievements. By constructing a difference-in-differences (DID) model and selecting listed companies from 2014 to 2018 as the sample, we utilize a database to obtain relevant data from 2017 to 2022, with the number of invention patent applications serving as the core variable. The study reveals that the new Securities Law significantly promotes high-quality innovation (particularly invention patents) output among listed companies, while having no significant effect on low-tech innovation achievements. Mechanism analysis indicates that the new law breaks down information barriers by enhancing information disclosure, enabling companies to grasp industry trends and foster high-quality innovation. Leading enterprises within the industry drive the improvement of the overall innovation level across the sector. The new Securities Law has optimized the institutional environment of the capital market and facilitated the output of high-quality corporate innovation achievements.

Suggested Citation

  • Zhang, Xiaoping & Zheng, Peng & Fu, Yuhan, 2025. "The new Securities Law, information disclosure quality and corporate innovation," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006270
    DOI: 10.1016/j.frl.2025.107367
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