Innovation in Chinese IPOs slashes costs, boosts market performance.
The study looked at how innovation affects the performance of companies when they first go public in China. They found that spending more on research and development before going public can make the company's stock price lower at first. But having more patents can actually make the stock price higher. This means that sharing information about innovation can help companies save money when they go public. The study also showed that before 2014, innovation had a bigger impact on stock prices in China. But after 2014, the government's policies had a different effect on stock prices.