Title: Research on the Spillover Effect of Competitors’ Innovation: From the Perspective of Liquidity Commonality

Speaker: Bing Tao, Associate Professor, School of Finance, Capital University of Economics and Business; Director of the Department of Financial Technology. His main research field is financial market microstructure. His representative papers have been published in journals such as "Journal of Management Sciences", "Securities Market Herald" and "Finance Research Letters". He presides over one project of the National Natural Science Foundation of China.

Abstract: Innovation activities have significant externalities. Using patent data of A-share listed companies from 2010 to 2023, this paper explores the impact of competitors’ innovation on the liquidity commonality of target companies. The study finds that competitors’ innovation has a significant spillover effect on the liquidity commonality of target companies, that is, the improvement of competitors’ innovation level helps to reduce the liquidity commonality of target companies. This paper verifies the competition incentive and information transmission mechanisms of competitors’ innovation on target companies. Furthermore, competitors’ innovation can promote substantive innovation of target companies, and the substantive innovation of competitors has the strongest promoting effect on the innovation of target companies. Heterogeneity analysis shows that the spillover effect of competitors’ innovation capability on the liquidity commonality of target companies is more significant in industry leaders, industries with low competition intensity, and enterprises with low technology sensitivity. From the perspective of the impact of competitors’ innovation on the market risk of target companies, this paper enriches the research on the spillover effect of innovation, and at the same time provides theoretical support and empirical experience for regulatory authorities to formulate innovation incentive policies and prevent market risks.

Date & time: 21 October 2025, 10:00-12:00

Venue: B321, Zhixin Building, Central Campus, Shandong University