Innovation source, advancement stage and company stock returns
AbstractThe purpose of this paper was to measure the short- and long-term impact of innovation announcements on the stock returns of service companies. In order to study the predictors of the abnormal stock returns, the study takes the adoption and diffusion theory as its conceptual background. The research was based on an event study and buy-and-hold methods. It encompassed 398 announcements released for 121 companies in EU member states between February 2011 and December 2016. The study deepens the dialogue on the role of the source of innovation and its advancement stage. It indicates a positive market reaction to high innovation advancement stage announcements in comparison to low advancement stage ones. Furthermore, it suggests a positive market reaction to in-house development in comparison to collaborative development and copying. Finally, the research signals that the innovation advancement stage complements its source by clarifying its relationship with abnormal market value changes.
|Journal series||Service Industries Journal, ISSN 0264-2069, (A 20 pkt)|
|Publication size in sheets||0.85|
|Keywords in English||innovation, stock returns, service sector|
|Score||= 20.0, 18-03-2020, ArticleFromJournal|
|Publication indicators||= 2; : 2018 = 0.809; : 2017 = 1.258 (2) - 2017=1.686 (5)|
* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.