Information Ambiguity, Patents and the Market Value of Innovative Assets

Katrin Hussinger and Sebastian Pacher
Additional contact information
Sebastian Pacher: Kienbaum Consultants International

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Research and development (R&D) is often essential for firms’ profitability and growth. At the same time, R&D is long-term and risky. We show that innovation activities lead to information ambiguity about the future value of firm’s assets. This effect appears to be more pronounced for small and less reputed firms. Information ambiguity further lowers firms’ market value and, in particular, the market value of innovative assets. We further show that high quality patents mitigate the negative effect of information ambiguity to some extent.

Keywords: R&D; patents; information ambiguity; market value (search for similar items in EconPapers)
JEL-codes: D81 G10 G14 O34 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://wwwen-archive.uni.lu/content/download/1130 ... ovative%20Assets.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to wwwen-archive.uni.lu:443 (nodename nor servname provided, or not known)

Related works:
Journal Article: Information ambiguity, patents and the market value of innovative assets (2019)
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:luc:wpaper:18-17

Access Statistics for this paper

More papers in DEM Discussion Paper Series from Department of Economics at the University of Luxembourg Contact information at EDIRC.
Bibliographic data for series maintained by Marina Legrand ().