File(s) not publicly available
Idiosyncratic Risk and Innovation: A Firm and Industry Level Analysis
journal contribution
posted on 2023-06-08, 05:56 authored by Mariana Mazzucato, Massimiliano TancioniRecent studies find that idiosyncratic risk (IR)—the degree to which firm-specific returns are more volatile than aggregate market returns—has increased since the 1960s and attribute this to economy-wide factors such as the role of the IT revolution. Yet no innovation data is used in these studies. To gain further insights into the relationship between technology and IR, our aricle studies whether firms and industries that are more R&D intensive are in fact characterized by higher IR due to how innovation affects the uncertainty of expected future profits. While the industry-level results prove inconclusive, a clear relationship is found between firm-level R&D intensity and firm-level volatility of returns.
History
Publication status
- Published
Journal
Industrial and Corporate ChangePublisher
Oxford University PressExternal DOI
Volume
17(4)Page range
779-811Department affiliated with
- SPRU - Science Policy Research Unit Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-02-06Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC