ANALYSIS OF THE IMPACT OF INNOVATION ON THE STOCK MARKET PERFORMANCE OF MANUFACTURING INDUSTRY COMPANIES IN ROMANIA

Alin-Ionut Dorobantu and Ioan-Alexandru Dumitrescu

The Valuation Journal, 2020, vol. 15, issue 1, 73-93

Abstract: The research paper consists in analyzing the impact of innovation activities performance of companies on the stock market. Recent studies have shown that the occasional efforts made by such activities can positively influence the price of shares. Investments in innovation lead to an indirect effect on stock market performance, as they influence financial performance, which in turn, has an impact on stock prices. The impact generated by investments in research and development is lower in the short term, while, in the long term, investments in innovation have a stronger influence upon stock market performance. The purpose of the paper is to study the existence and intensity of the connection between the innovation efforts of listed companies and their stock market performance. The study is based on real information from the Bucharest Stock Exchange website. The research method used involves the analysis of data using regression and correlation, this being calculated with the help of the statistical program SPSS. The study proves that the effects of investments made in innovation have a positive impact on stock market performance, highlighting the connection between them

JEL-codes: M41 O16 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:vaj:journl:v:15:y:2020:i:1:p:73-93

Access Statistics for this article

The Valuation Journal is currently edited by Ion Anghel

More articles in The Valuation Journal from The National Association of Authorized Romanian Valuers Contact information at EDIRC.
Bibliographic data for series maintained by Stefan Alexandru ().