Do Patented Innovations Reduce Stock Price Crash Risk?*
Copyright policy )Do Patented Innovations Reduce Stock Price Crash Risk?*
AbstractUsing a large sample of US firms, we document a significantly negative relation between the number of patents (citations) and stock price crash risk. Our findings are consistent with the arguments that patented innovation activities send a high‐quality signal and reduces proprietary information costs, which lowers information asymmetry and enhance disclosure. Further, we find that such impact of patented innovation on stock price crash risk is more pronounced in firms with weak corporate governance and high information opacity. Our findings provide new evidence on the real effects of patented innovation on crash risk in equity market.
- Qatar University Qatar
- University of Quebec Canada
- Concordia University Canada
- University of Western Australia Australia
International Financial Reporting Standards, Voluntary Disclosure, Management Earnings Forecasts
International Financial Reporting Standards, Voluntary Disclosure, Management Earnings Forecasts
selected citations These citations are derived from selected sources.This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).27 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 10% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
Citations provided by BIP!Popularity provided by BIP!