R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective

Volume: 119, Pages: 259 - 271
Published: Oct 1, 2020
Abstract
We propose an alternative firm-level measure for innovation activities—R&D elasticity—and we analyse its effects on the Tobin's Q of listed companies on the Euronext 100 Index. We find that R&D elasticity is positively related to market appreciation by stakeholder investors. Moreover, we analyse the role of default risk in the relationship between innovation activities and market value, and find that firms' default probabilities are negatively...
Paper Details
Title
R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective
Published Date
Oct 1, 2020
Volume
119
Pages
259 - 271
Citation AnalysisPro
  • Scinapse’s Top 10 Citation Journals & Affiliations graph reveals the quality and authenticity of citations received by a paper.
  • Discover whether citations have been inflated due to self-citations, or if citations include institutional bias.