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

Autori
Coluccia, Daniela ; Dabić, Marina ; Del Giudice, Manlio ; Fontana, Stefano ; Solimene, Silvia

Izvornik
Journal of business research (0148-2963) 119 (2019); 259-271

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
innovation elasticity ; market value ; default risk ; disclosure ; stakeholder

Sažetak
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.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA