Innovation source, advancement stage and company stock returns

ABSTRACT

The purpose of this paper was to measure the short- and long-term impact of innovation announcements on the stock returns of service companies. In order to study the predictors of the abnormal stock returns, the study takes the adoption and diffusion theory as its conceptual background. The research was based on an event study and buy-and-hold methods. It encompassed 398 announcements released for 121 companies in EU member states between February 2011 and December 2016. The study deepens the dialogue on the role of the source of innovation and its advancement stage. It indicates a positive market reaction to high innovation advancement stage announcements in comparison to low advancement stage ones. Furthermore, it suggests a positive market reaction to in-house development in comparison to collaborative development and copying. Finally, the research signals that the innovation advancement stage complements its source by clarifying its relationship with abnormal market value changes.

摘要

本文的目的是衡量创新公告对服务公司股票收益的短期和长期影响。为了研究股票收益异常的预测因素，本研究以采纳和扩散理论作为其概念背景。该研究基于事件研究和购买和持有方法。它涵盖了2011年2月至2016年12月期间为欧盟成员国中的121家公司发布的398个公告。该研究深化了关于创新源泉及其发展阶段的作用的对话。这表明市场对高创新发展阶段的公告的市场反应与低发展阶段公告相比有积极作用。此外，与合作开发和复制相比，它表明了对内部开发的积极的市场反应。最后，研究表明，创新发展阶段通过阐明其与异常市场价值变化的关系来补充其来源。

KEYWORDS:

• Innovation
• stock returns
• service sector

关键词:

• 创新
• 股票回报
• 服务业

Disclosure statement

No potential conflict of interest was reported by the author.

ORCID

Dawid Szutowski http://orcid.org/0000-0002-5841-4973

Additional information

Funding

This work was supported by the National Science Centre, Poland (10.13039/501100004281 Narodowe Centrum Nauki) under [grant number 2014/13/N/HS4/02954].