Firms’ innovation strategy under the shadow of analyst coverage
| Autor: | Anna Toldrà-Simats, David Pérez-Castrillo, Bing Guo |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance ComputingMilieux_THECOMPUTINGPROFESSION business.industry Strategy and Management 05 social sciences Corporate venture capital Novelty 04 agricultural and veterinary sciences Public relations Outcome (game theory) Accounting 0502 economics and business 0401 agriculture forestry and fisheries Business Finance Industrial organization Shadow (psychology) |
| Zdroj: | Journal of Financial Economics. 131:456-483 |
| ISSN: | 0304-405X |
| Popis: | We study the effect of analyst coverage on firms’ innovation strategy and outcome. Using data of US firms from 1990 to 2012, we find evidence that an increase in financial analysts leads firms to cut research and development expenses, acquire more innovative firms, and invest in corporate venture capital. We attribute the first result to the effect of analyst pressure and the others to the informational role of analysts. We also find that financial analysts encourage firms to make more efficient investments related to innovation, which increases their future patents and citations and influences the novelty of their innovations. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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