Innovation Search Strategy and Predictable Returns

Because of the intangible and highly uncertain nature of innovation, investors may have difficulty processing information associated with a firm’s innovation search strategy. Due to cognitive and s...

[1]  Adam B. Jaffe,et al.  Characterizing the “technological position” of firms, with application to quantifying technological opportunity and research spillovers☆ , 1989 .

[2]  Zhi Da,et al.  The Disparity between Long-Term and Short-Term Forecasted Earnings Growth , 2009 .

[3]  Daniel A. Levinthal,et al.  The myopia of learning , 1993 .

[4]  Michael L. Ettredge,et al.  The size, concentration and evolution of corporate R&D spending in U.S. firms from 1976 to 2010: Evidence and implications☆ , 2012 .

[5]  Gustavo Manso.  Motivating Innovation , 2010 .

[6]  Daniel A. Levinthal,et al.  Exploration and Exploitation in Organizational Learning , 2007 .

[7]  Jun Li,et al.  Investor Attention, Psychological Anchors, and Stock Return Predictability , 2010 .

[8]  Dimitris Papanikolaou,et al.  Organization Capital and the Cross-Section of Expected Returns , 2013 .

[9]  J. Lerner,et al.  The Use and Abuse of Patent Data , 2014 .

[10]  Heterogeneous Innovation and the Antifragile Economy* , 2019 .

[11]  E. Fama,et al.  A Five-Factor Asset Pricing Model , 2014 .

[12]  X. Tian,et al.  Finance and Corporate Innovation: A Survey , 2018 .

[13]  R. Stambaugh,et al.  Mispricing Factors , 2015 .

[14]  Charles E. Wasley,et al.  The Effect of Research and Development (R&D) Inputs and Outputs on the Relation between the Uncertainty of Future Operating Performance and R&D Expenditures , 2011 .

[15]  X. Tian,et al.  How Does Hedge Fund Activism Reshape Corporate Innovation? , 2016, Journal of Financial Economics.

[16]  B. Nguyen.  Is More News Good News? Media Coverage of CEOs, Firm Value, and Rent Extraction , 2015 .

[17]  William H. Beaver,et al.  Biases and Lags in Book Value and Their Effects on the Ability of the Book-to-Market Ratio to Predict Book Return on Equity , 2000 .

[18]  R. Dolan,et al.  Contextual Novelty Modulates the Neural Dynamics of Reward Anticipation , 2011, The Journal of Neuroscience.

[19]  Charles M. C. Lee,et al.  Toward an Implied Cost of Capital , 2000 .

[20]  W. Mitchell,et al.  The effect of introducing important incremental innovations on market share and business survival , 1995 .

[21]  E. Fama,et al.  Risk, Return, and Equilibrium: Empirical Tests , 1973, Journal of Political Economy.

[22]  Unconstrained estimates of the equity risk premium , 2013 .

[23]  Gustavo Manso,et al.  Shareholder Litigation and Corporate Innovation , 2020, Manag. Sci..

[24]  J. Stein,et al.  Disagreement and the Stock Market , 2007 .

[25]  Bronwyn H Hall,et al.  Market value and patent citations , 2005 .

[26]  Song Ma,et al.  The Life Cycle of Corporate Venture Capital , 2019, The Review of Financial Studies.

[27]  E. Mansfield,et al.  The Production and Distribution of Knowledge in the United States. , 1963 .

[28]  D. Hirshleifer,et al.  Driven to Distraction: Extraneous Events and Underreaction to Earnings News , 2007 .

[29]  Daniel A. Levinthal,et al.  A model of adaptive organizational search , 1981 .

[30]  Raynolde Pereira,et al.  Does Voluntary Disclosure Improve Stock Price Informativeness , 2008 .

[31]  J. Mervis.  Data check: U.S. government share of basic research funding falls below 50% , 2017 .

[32]  Brad M. Barber,et al.  All that Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors , 2006 .

[33]  C. Raimondo.  The Media and the Financial Markets: A Review , 2019, Asia-Pacific Journal of Financial Studies.

[34]  E. Fama,et al.  Forecasting Profitability and Earnings , 1999 .

[35]  Camelia M. Kuhnen,et al.  Public Opinion and Executive Compensation , 2010, Manag. Sci..

[36]  Gustavo Manso,et al.  Independent Boards and Innovation , 2017 .

[37]  Patricia M. Dechow,et al.  Executive incentives and the horizon problem: An empirical investigation , 1991 .

[38]  Alina Sorescu,et al.  Interpreting the Stock Returns to New Product Announcements: How the past Shapes Investors’ Expectations of the Future , 2017 .

[39]  Norbert Schwarz,et al.  If it,s easy to read, it,s easy to do, pretty, good, and true , 2010 .

[40]  Lauren Cohen,et al.  Complicated Firms , 2011 .

[41]  M. C. Jensen,et al.  The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems , 1993, A Theory of the Firm.

[42]  Sheridan Titman,et al.  On Persistence in Mutual Fund Performance , 1997 .

[43]  R. Gopalan,et al.  Conglomerates and Industry Distress , 2008 .

[44]  Stefano DellaVigna,et al.  Investor Inattention and Friday Earnings Announcements , 2009 .

[45]  Y. Amihud,et al.  Illiquidity and Stock Returns: Cross-Section and Time-Series Effects , 2000 .

[46]  Dong Lou,et al.  Attracting investor attention through advertising , 2014 .

[47]  王娇,et al.  P2P网络借贷平台信用风险研究 Research on Credit Risk of P2P Network Lending Platform , 2015 .

[48]  Eric C. So.  A New Approach to Predicting Analyst Forecast Errors: Do Investors Overweight Analyst Forecasts? , 2012 .

[49]  Mark A. Schankerman,et al.  Identifying Technology Spillovers and Product Market Rivalry , 2005 .

[50]  J. Lewellen.  The Cross Section of Expected Stock Returns , 2014 .

[51]  Excess Returns to R&D-Intensive Firms , 2002 .

[52]  Jeremy C. Stein,et al.  Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate Behavior , 1989 .

[53]  F. T. Magiera.  Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings , 1997 .

[54]  Gur Huberman,et al.  Contagious Speculation and a Cure for Cancer: A Nonevent that Made Stock Prices Soar , 2001 .

[55]  胡盛昌,et al.  《The influence of institutional investors on myopic R＆D investment behavior》述评 , 2012 .

[56]  Andrea Frazzini,et al.  Economic Links and Predictable Returns , 2007 .

[57]  Feng Gu,et al.  Innovation, Future Earnings, and Market Efficiency , 2005 .

[58]  Julian Atanassov,et al.  Can Corporate Income Tax Cuts Stimulate Innovation? , 2019, Journal of Financial and Quantitative Analysis.

[59]  Po-Hsuan Hsu,et al.  Innovation Strategy of Private Firms , 2017 .

[60]  Raymond J. Dolan,et al.  Anticipation of novelty recruits reward system and hippocampus while promoting recollection , 2007, NeuroImage.

[61]  Gustavo Grullon,et al.  Advertising, Breadth of Ownership, and Liquidity , 2004 .

[62]  Michael S. Weisbach,et al.  CEO turnover and the firm's investment decisions , 1995 .

[63]  Daniel Ferreira,et al.  Incentives to Innovate and the Decision to Go Public or Private , 2010 .

[64]  Tyler Shumway,et al.  Do Behavioral Biases Affect Prices? , 2001 .

[65]  Richard G. Sloan.  Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings , 1998 .

[66]  D. Hirshleifer,et al.  Innovative Originality, Profitability, and Stock Returns , 2017 .

[67]  Kristopher J. Hult.  Incremental innovation and pharmaceutical productivity , 2015 .

[68]  Josef Lakonishok,et al.  Contrarian Investment, Extrapolation, and Risk , 1993 .

[69]  D. Hirshleifer,et al.  A Financing-Based Misvaluation Factor and the Cross Section of Expected Returns , 2010 .

[70]  E. Fama,et al.  Common risk factors in the returns on stocks and bonds , 1993 .

[71]  L. Kogan,et al.  Technological Innovation, Resource Allocation, and Growth , 2012 .

[72]  Mary J. Benner,et al.  Process Management and Technological Innovation: A Longitudinal Study of the Photography and Paint Industries , 2002 .

[73]  Po-Hsuan Hsu,et al.  Innovative Efficiency and Stock Returns , 2012 .

[74]  Christopher J. Malloy,et al.  Misvaluing Innovation , 2012 .

[75]  Jesper B. Sørensen,et al.  Aging, Obsolescence, and Organizational Innovation , 2000 .

[76]  O. Sorenson,et al.  Science as a Map in Technological Search , 2000 .

[77]  Lin Peng,et al.  A Tale of Two Anomalies: The Implications of Investor Attention for Price and Earnings Momentum , 2009 .

[78]  Kenneth R. Ahern,et al.  Rumor Has It: Sensationalism in Financial Media , 2014 .

[79]  Peter Klibanoff,et al.  Investor Reaction to Salient News in Closed-End Country Funds , 1996 .

[80]  E. Fama,et al.  Profitability, investment and average returns , 2006 .

[81]  Zhi Da,et al.  In Search of Attention , 2009 .

[82]  A. Arora,et al.  Killing the Golden Goose ? The changing nature of corporate research , 1980-2007 , 2015 .

[83]  E. Fama,et al.  Industry costs of equity , 1997 .

[84]  Mark T. Leary,et al.  Misvaluation of New Trademarks , 2019 .

[85]  Brian J. Bushee.  Do Institutional Investors Prefer Near-Term Earnings Over Long-Run Value? , 1999 .