This paper takes 230 IT and biotechnology listed companies in China and 95 pieces of their innovative news as sample,utilizing event study approach and market yield model,analyzing how the news affects companies' short-term stock price movement.By the t test,sign test and rank test,we find that sample stocks achieve abnormal yield on their innovative news announcement and cumulative abnormal return significantly in event window of 2-day,3-day and 5 - day respectively,indicating that innovative operating activities have created value for the company.The cross section a- nalysis of abnormal return shows that abnormal return correlates negatively with company' s market value,size,profit level and book -market value ratio,while correlates positively with listing age.