01867cas a2200265 a 4500 AALejournalIMF017710 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484303726 1018-5941 BD-DhAAL BD-DhAAL He, Hui. Does the Stock Market Boost Firm Innovation? : Evidence from Chinese Firms / Hui He, Hanya Li, Jinfan Zhang. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (56 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper analyses the effect of the stock market on firm innovation through the lens of initial public offering (IPO) using uniquely matched Chinese firm-level data. We find that IPOs lead to an increase in both the quantity and quality of firm innovation activity. In addition, IPOs expand a firm's scope of innovation beyond its core business. The impact of IPOs on firm innovation varies across financial constraints, corporate governance, and ownership structures. Our results further illustrate that IPOs induce a firm to increase the number of inventors and enable better retention of existing inventors after the IPO. Finally, we show that the enhanced innovation activity resulting from IPOs increases a firm's Tobin's Q in the long run. Mode of access: Internet Li, Hanya. Zhang, Jinfan. IMF Working Papers; Working Paper ; No. 2017/147 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/147/001.2017.issue-147-en.xml IMF e-Library