 R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspectiveDaniela Coluccia, Marina Dabic (), Manlio Del Giudice, Stefano Fontana and Silvia Solimene Journal of Business Research, 2020, vol. 119, issue C, 259-271 Abstract: 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. Keywords: Innovation elasticity; Market value; Default risk; Disclosure; Stakeholder (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:119:y:2020:i:c:p:259-271 DOI: 10.1016/j.jbusres.2019.04.015 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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