Abnormal market valuation and new product announcements: the role of advancement stage and innovativeness

Dawid Szutowski


In this paper, I investigate the role of innovativeness and innovation advancement stage with a view to advancing the development of signalling theory within literature on new product announcements. I examine the effects of innovativeness across the eight stages of innovation advancement, applying the event study methodology to a sample of 407 new product announcements, released during the period of January 2011–December 2016 by European biotechnology and pharmaceutical companies. I found that a high level of innovativeness resulted in larger increases of stock market return when the level of advancement was low (during testing phases), and smaller when the production of the new product had commenced. Subsequently, I present practical insights into the role that the advancement stage plays in new product announcements, which may be used to increase market valuation of the firm.
Author Dawid Szutowski (WZ / KCAFiW)
Dawid Szutowski,,
Journal seriesInnovation-Management Policy & Practice, ISSN 1447-9338, (A 20 pkt)
Issue year2018
Publication size in sheets0.8
Keywords in Englishnew product, innovativeness, advancement stage
ASJC Classification1405 Management of Technology and Innovation
URL www.tandfonline.com/eprint/xrjTZmCuaw3WScxcFx5r/full
Languageen angielski
Score (nominal)20
Score sourcejournalList
ScoreMinisterial score = 20.0, 18-03-2020, ArticleFromJournal
Publication indicators WoS Citations = 1; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.68; WoS Impact Factor: 2015 = 0.088 (2) - 2015=0.575 (5)
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