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Research intensity and financial analysts: signaling effects of patents
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
The U. of Texas at San Antonio.
2015 (English)Conference paper (Refereed)
Abstract [en]

In this paper, we study how R&D investment affect financial analyst’s earnings forecasts and how intellectual capital endowments moderate this effect. We argue that high information asymmetry and uncertainty associated with R&D investment increase a financial analysts’ earnings forecast error. Patents can remedy this relationship by signaling the ability of a firm in transforming research investments into new and valuable knowledge. Using a panel of 2,253 publicly listed U.S firms, we find that higher R & D intensity is positively correlated with financial analysts’ earnings forecast error. The endowment of intellectual capital (i.e. patents) moderates this relationship negatively. However we do not find any moderating effect for the value of patents measured as forward citations.

Place, publisher, year, edition, pages
2015.
Series
, Academy of Management Annual Meeting Proceedings, ISSN 2151-6561
Keyword [en]
Patents
National Category
Business Administration Economics
Research subject
Industrial Engineering and Management; Economics; Business Studies
Identifiers
URN: urn:nbn:se:kth:diva-184723DOI: 10.5465/AMBPP.2015.193OAI: oai:DiVA.org:kth-184723DiVA: diva2:916728
Conference
the Seventy-fifth Annual Meeting of the Academy of Management
Note

QC 20160415

Available from: 2016-04-04 Created: 2016-04-04 Last updated: 2016-04-15Bibliographically approved

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ReferencesLink to record
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