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Journal ArticleDOI

The dark side of analyst coverage: The case of innovation

01 Sep 2013-Journal of Financial Economics (North-Holland)-Vol. 109, Iss: 3, pp 856-878
TL;DR: In this article, the authors examined the effects of financial analysts on the real economy in the case of innovation and found that firms covered by a larger number of analysts generate fewer patents and patents with lower impact.
About: This article is published in Journal of Financial Economics.The article was published on 2013-09-01. It has received 710 citations till now.
Citations
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Journal ArticleDOI
TL;DR: In this article, the authors examine how financial market development affects technological innovation and identify economic mechanisms through which the development of equity markets and credit markets affect technological innovation using a large data set that includes 32 developed and emerging countries and a fixed effects identification strategy.

741 citations

Journal ArticleDOI
TL;DR: In this paper, the authors exploit the deregulation of interstate bank branching laws to test whether banking competition affects innovation and find robust evidence that banking competition reduces state-level innovation by public corporations headquartered within deregulating states.

473 citations

Journal ArticleDOI
TL;DR: In this article, the authors show that firms that transition to independent boards focus on more crowded and familiar areas of technology, and that the citation increase comes mainly from incremental patents in the middle of the citation distribution; the numbers of uncited and highly cited patents do not change significantly.

433 citations

Journal ArticleDOI
TL;DR: The authors analyzed how corporate venture capital differs from independent venture capital in nurturing innovation in entrepreneurial firms and found that CVC-backed firms are more innovative, as measured by their patenting outcome, although they are younger, riskier, and less profitable than IVC-based firms.
Abstract: We analyze how corporate venture capital (CVC) differs from independent venture capital (IVC) in nurturing innovation in entrepreneurial firms. We find that CVC-backed firms are more innovative, as measured by their patenting outcome, although they are younger, riskier, and less profitable than IVC-backed firms. Our baseline results continue to hold in a propensity score matching analysis of IPO firms and a difference-in-differences analysis of the universe of VC-backed entrepreneurial firms. We present evidence consistent with two possible underlying mechanisms: CVC's greater industry knowledge due to the technological fit between their parent firms and entrepreneurial firms and CVC's greater tolerance for failure.

356 citations

Journal ArticleDOI
TL;DR: In this paper, the authors examined the relation between innovation and a firm's financial dependence using a sample of privately held and publicly traded US firms and found that public firms in external finance dependent industries spend more on research and development and generate a better patent portfolio than their private counterparts.

283 citations

References
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Journal ArticleDOI
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Abstract: : The results of observational studies are often disputed because of nonrandom treatment assignment. For example, patients at greater risk may be overrepresented in some treatment group. This paper discusses the central role of propensity scores and balancing scores in the analysis of observational studies. The propensity score is the (estimated) conditional probability of assignment to a particular treatment given a vector of observed covariates. Both large and small sample theory show that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates. Applications include: matched sampling on the univariate propensity score which is equal percent bias reducing under more general conditions than required for discriminant matching, multivariate adjustment by subclassification on balancing scores where the same subclasses are used to estimate treatment effects for all outcome variables and in all subpopulations, and visual representation of multivariate adjustment by a two-dimensional plot. (Author)

23,744 citations

Journal ArticleDOI
TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.
Abstract: В статье производится анализ агрегированной производственной функции, вводится аппарат, позволяющий различать движение вдоль такой функции от ее сдвигов. На основании сделанных в статье предположений делаются выводы о характере технического прогресса и технологических изменений. Существенное внимание уделяется вариантам применения концепции агрегированной производственной функции.

10,850 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigated the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment cash flow sensitivity.
Abstract: No. This paper investigates the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment-cash flow sensitivities. We find that firms that appear less financially constrained exhibit significantly greater sensitivities than firms that appear more financially constrained. We find this pattern for the entire sample period, subperiods, and individual years. These results (and simple theoretical arguments) suggest that higher sensitivities cannot be interpreted as evidence that firms are more financially constrained. These findings call into question the interpretation of most previous research that uses this methodology.

5,147 citations

Journal ArticleDOI
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.

4,341 citations

Posted Content
TL;DR: Hall et al. as mentioned in this paper explored the usefulness of patent citations as a measure of the "importance" of a firm's patents, as indicated by the stock market valuation of the firm's intangible stock of knowledge.
Abstract: Author(s): Hall, Bronwyn H.; Jaffe, A; Trajtenberg, M | Abstract: We explore the usefulness of patent citations as a measure of the "importance" of a firm's patents, as indicated by the stock market valuation of the firm's intangible stock of knowledge. Using patents and citations for 1963-1995, we estimate Tobin's q equations on the ratios of RaD to assets stocks, patents to RaD, and citations to patents. We find that each ratio significantly affects market value, with an extra citation per patent boosting market value by 3%. Further findings indicate that "unpredictable" citations have a stronger effect than the predictable portion, and that self-citations are more valuable than external citations.

2,989 citations