The Value Transmission Mechanism of Innovation Input: A Study on the Mediating Effect of Economic Profit

Based on the data of A-share listed companies from 2008 to 2024, this paper empirically tests the mechanism of action among corporate innovation, economic profit, and corporate value. The study finds that substantive innovation significantly reduces the current economic value added per share (EVAps) and exerts a negative indirect impact on corporate value; however, after introducing this mediating variable, the direct effect of innovation on value is not significant, forming a typical “suppression effect”. The results indicate that although innovation suppresses financial performance in the short term, the market may still hold expectations for its long-term value. This research provides empirical evidence for understanding the complex path through which innovation affects corporate value.