R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective
By D. Coluccia, Marina Dabic, M. del Giudice, Stefano Fontana, Silvia Solimene. 2020
119 citations recorded by the source corpus.
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 related to Tobin's Q. These findings are supported by OLS regressions, wherein Tobin's Q is regressed on R&D elasticity, five-year default probability, and controls such as ESG voluntary disclosure. These results further the research aimed at developing a conceptual framework for integrating at a policy level the R&D elasticity indicator as a type of innovation disclosure among the non-financial disclosures released by companies.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/88b9716b6b71603247e9c02eacefbc2676d92e57
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In Economics and Econometrics
Citations in the corpus
- The Interaction Effect between ESG and Green Innovation and Its Impact on Firm Value from the Perspective of Information Disclosure (2020, background): “(3) Different from conclusions scholars previously have drawn, the relationship between innovation and social responsibility is always substitutive [6,7].”