The contingent effect of analyst coverage: how does analyst coverage affect innovation and Tobin’s Q?

Jung, Sung Hwan

doi:10.1080/16081625.2016.1174070

Cited by 9 publications

(7 citation statements)

References 58 publications

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“…Specifically, with the increase in Internet penetration, investors’ information acquisition and supervision capabilities will be improved, the informational asymmetries between investors and management will be further alleviated. For one thing, with the reduction of corporate unsymmetrical information, the risk of corporate expected returns is reducing [ 23 ], which helps to alleviate corporate financing constraints [ 24 ] and provides financial support for corporate innovation [ 16 ]. On the other hand, investors’ tolerance for corporate innovation failure will also increase accordingly [ 21 ].…”

Section: Resultsmentioning

confidence: 99%

“…Besides, for investors, with the alleviation of the feeble quality of information, the uncertainty of corporate earnings will also decrease [ 23 ], and correspondingly, corporate financing costs will also decrease. Then, it will help ameliorate corporate financing constraints [ 24 ], provide financial support for corporate innovation [ 16 ], and improve corporate innovation enthusiasm. Formally, the first hypothesis is stated as follows:…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

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Firm information disclosure environment and R&D investment: Evidence from Internet penetration

Wang

Khan

et al. 2021

PLoS ONE

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Guided by the conviction that “Clear waters and green mountains are as good as mountains of gold and silver”, China highly values sustainable economic and social development through innovation and Internet technology. Regression analysis is performed to examine the impact of corporate information disclosure environment proxied by the Internet penetration rate on innovation. Leveraging from the city-level Internet penetration rates data in China from 2003 to 2017, this study gets the following findings: (1) Firms headquartered in cities with high Internet penetration rates tend to be more innovative, i.e. they invest more in research and development. (2) This result is supported by several robustness checks, such as alternative measures of key variables, alternative empirical specifications, and tests to mitigate identification concerns. (3) "financing constraint" and "tolerance of innovation failure" are two channels that influence firms’ innovative endeavors. (4) Additional tests show that Internet penetration rates facilitate a firm’s output efficiency of innovation input, total factor productivity, and human capital environment for innovation. The above conclusions not only enrich the relevant literature on the influencing factors of corporate innovation from the perspective of the firm information disclosure environment but also provide an important reference for further understanding the positive role of macro technology development on social and economic development.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

Firm information disclosure environment and R&D investment: Evidence from Internet penetration

Wang

Khan

et al. 2021

PLoS ONE

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“…For external investors, their perception of the corporate information disclosure environment will directly affect enterprises' financing behaviour and investors' recognition of innovation projects. The increase in investors' attention to listed companies reduces information asymmetry and expected return risk [72] and alleviates enterprises' financing constraints [73]. It provides financial support for corporate innovation [40] and improves the innovation enthusiasm of enterprises.…”

Section: Potential Mechanismsmentioning

confidence: 99%

Investor Attention and Corporate Innovation Performance: Evidence from Web Search Volume Index of Chinese Listed Companies

Yuan

et al. 2021

Mathematics

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Leveraging from the online search index of Chinese listed companies from 2012 to 2018, we empirically test the relationship between investors’ attention and corporate innovation performance for the first time. The main results are as follows: (1) investors’ attention significantly improves listed companies’ innovation performance, which is reflected in the increase of patent applications. This indicates that investors’ active information collection behaviour affects China’s economic development by promoting enterprise innovation. (2) This paper’s conclusion remains intact after a battery of robustness checks, such as alternative measures of key variables and empirical specifications and a series of endogenous treatment. (3) The mechanisms tests show that: “information asymmetry”, “financing constraint”, and “agency cost” are supported. In other words, with the increase of investors’ attention, not only the information asymmetry is reduced, which greatly improved the information environment of the capital market, but also the external financing constraints of enterprises are alleviated. The opportunistic management behaviour is effectively suppressed, thus motivating the corporate innovation incentives and improving the corporate innovation of input, output and quality. (4) Further research shows that investor attention to listed companies also improves the efficiency of capital allocation. This paper’s conclusion shows that investors’ initiative information acquisition behaviour can improve enterprises innovation performance, thus providing a driving force for China’s economic development.

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“…De acordo com Guimarães (2016) e Junng (2017), uma inovação é uma interessante estratégia utilizada pelas empresas de negócios, com a preocupação de se conseguir crescimento e estabilidade no (GUIMARÃES, et al, 2016;JUNG, 2017). Através dos seus vários aspectos, a inovação concede às empresas a oportunidade de acompanhar as mudanças no ambiente, ou, de gerenciar e ser líder em um segmento específico de mercado (PARK et al, 2017).…”

Section: Inovaçãounclassified

Inovação tecnológica e empreendedorismo: representação no contexto brasileiro entre os anos 2011 a 2019

Souza

Filho

2020

RBADM

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Inovação tecnológica e empreendedorismo tem sido temas em evidência, sendo assim muito discutido na contemporaneidade, em meios científicos, políticos e empresariais. Embora são conceitos diferentes, sugere-se a existência de uma relação entre eles. Assim, na tentativa de verificar a existência dessa associação, o presente estudo realizou uma pesquisa qualitativa e exploratória, que se utilizou de dados quantitativos. Os resultados mostram crescimento significativo aos longos dos anos verificados com enfoque para a P&D. Houve também o aumento da atividade inovadora nas indústrias e do comércio também, o que é positivo para os pequenos negócios. A pesquisa ressalta também que os termos empreendedorismo e inovação, embora tenham alguma proximidade, expressam conceitos diferentes. O empreendedorismo consiste no processo por meio do qual indivíduos transformam ideias em oportunidades, a fim de gerar riqueza. A inovação, por sua vez, é o processo por meio do qual novos produtos e serviços ou processos são implementados; também visa à continuidade do negócio e a geração de receita chave para o crescimento econômico e o desenvolvimento social baseados no conhecimento. Assim, a novidade necessária à inovação consiste na principal diferença entre os termos. Com isso, nem todos os empreendedores são inovadores, como destacado por alguns conceitos referentes ao empreendedorismo.

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The contingent effect of analyst coverage: how does analyst coverage affect innovation and Tobin’s Q?

Cited by 9 publications

References 58 publications

Firm information disclosure environment and R&D investment: Evidence from Internet penetration

Firm information disclosure environment and R&D investment: Evidence from Internet penetration

Investor Attention and Corporate Innovation Performance: Evidence from Web Search Volume Index of Chinese Listed Companies

Inovação tecnológica e empreendedorismo: representação no contexto brasileiro entre os anos 2011 a 2019

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