University of Sussex
Browse

File(s) not publicly available

Innovation and market value: a quantile regression analysis

journal contribution
posted on 2023-06-07, 21:55 authored by Alex Coad, Rekha Rao
We construct a new database by matching firm-level Compustat data to NBER patent data, for four 2-digit complex technology sectors. Whilst conventional regression estimators show that the stock market does recognise efforts at innovation, quantile regression analysis adds a new dimension to the literature, suggesting that the influence of innovation on market value varies dramatically across the market value distribution. For firms with a low value of Tobin's q, the stock market will barely recognize their attempts to innovate. For firms with the highest values of Tobin's q, however, their market value is particularly sensitive to innovative activity.

History

Publication status

  • Published

Journal

Economics Bulletin

Issue

13

Volume

15

Page range

1-10

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-02-06

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC