Policy role, information disclosure, and enterprise innovation

•The interaction between Policy, information disclosure, and corporate innovation is examined.•The intricate connection, shedding light on how legislative frameworks impact the innovation strategies of businesses is analysed.•The importance of various factors supporting innovation inside organizations, such as the regulatory framework, technical progress, and entrepreneurial activity is examined. The interactive relationship between policy, information disclosure and Enterprise innovation is crucial for the development of modern Enterprises. This paper examines how disclosure regulations imposed by regulators stimulate Enterprise innovation by shaping the dissemination of critical information that supports competitive advantage. This paper uses fixed effects and Bayesian model analysis methods for analysis. The study finds that policy and information disclosure drive corporate executives to make strategic choices, which will promote corporate innovation to ensure sustainable development and competitive advantage of enterprises.