Technological Innovation and Firm Financial Performance: Evidence from Blockchain-Related Listed Firms in China

DOI

10.2991/978-94-6239-689-0_10How to use a DOI?

Keywords

technological innovation; financial performance; blockchain; patents; resource reallocation

Abstract

Technological innovation is widely regarded as a key driver of firm competitiveness and long-term value creation. However, due to high investment intensity, uncertainty, and long commercialization cycles, the financial consequences of innovation remain empirically ambiguous. Using a panel of block chain-related Chinese A-share listed firms from 2020 to 2024, this study examines how technological innovation affects firm financial performance across multiple dimensions. From a computer science perspective, blockchain-related innovation represents investment in distributed computing systems that integrate cryptographic algorithms, consensus mechanisms, and decentralized data architectures. Such technologies directly influence system performance, computational efficiency, data integrity, and information-processing costs within firm-level information systems. From a resource reallocation perspective, we distinguish between innovation inputs and innovation outputs and analyze their contemporaneous and dynamic effects on profitability, operating efficiency, solvency, and growth capability. The empirical results show that innovation inputs significantly enhance firm profitability and solvency but reduce contemporaneous operating efficiency. Innovation outputs exhibit asymmetric effects: patent quantity is generally associated with improved financial performance, whereas patent quality imposes short-term financial pressure. Overall, the findings provide a mechanism-based explanation for the mixed evidence in the innovation–performance literature and offer implications for innovation-oriented firms in emerging technology sectors.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Shujun Sheng
PY  - 2026
DA  - 2026/05/28
TI  - Technological Innovation and Firm Financial Performance: Evidence from Blockchain-Related Listed Firms in China
BT  - Proceedings of the 2026 2nd International Conference on Data Mining and Project Management (DMPM 2026)
PB  - Atlantis Press
SP  - 103
EP  - 114
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-689-0_10
DO  - 10.2991/978-94-6239-689-0_10
ID  - Sheng2026
ER  -