Firms’ knowledge investment and market responses

Kyriakos Drivas, Claire Economidou, Elena Ketteni and Constantina Kottaridi
Additional contact information
Elena Ketteni: Frederick University

Empirical Economics, 2021, vol. 61, issue 5, No 2, 2363-2394

Abstract: Abstract This paper offers novel insights of market responses to firms’ decisions to invest in knowledge capital. Based on nonparametric techniques, we find evidence of nonlinearities and regime switches. Investment in innovation inputs increases the market value of a firm; however, an extra dollar spent on R&D does not always reflect higher market value. Threshold effects are more apparent when it comes to patents, implying that markets develop a critical stance in valuing innovation output and its quality.

Keywords: Market value; Innovation; R&D; Patents; Marginal integration; Semi-parametric PLR model (search for similar items in EconPapers)
JEL-codes: G12 G32 O30 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00181-020-01957-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:61:y:2021:i:5:d:10.1007_s00181-020-01957-6

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-020-01957-6

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().