Showing 1 - 10 of 203,718
patent grant announcements. We use the media coverage of innovation announcements as a proxy for the investor attention paid …We analyze, theoretically and empirically, the effect of investor attention on the stock market reaction to innovation … with limited investor attention to show that, following the immediate market reaction to innovation announcements, there …
Persistent link: https://www.econbiz.de/10012845977
We quantify the effect of a significant technological innovation, shale oil development, on asset prices. Using stock …
Persistent link: https://www.econbiz.de/10012854912
We analyze, theoretically and empirically, the implications of salience on innovation announcements in the … biopharmaceutical industry. We hypothesize that equity market investors are more likely to pay attention to an innovation announcement … patent grant announcements of the same molecule. Based on this assumption, we develop a dynamic model with limited investor …
Persistent link: https://www.econbiz.de/10014352748
The attention-grabbing hypothesis has been offered as a behavioural explanation for post-event abnormal returns for FDA drug approval announcements for NYSE listed firms. We show that when event-day mis-specification is accounted for the market reaction is centred on the event-day and that the...
Persistent link: https://www.econbiz.de/10013231342
&D prefer to set higher stock prices to mitigate investor short-termism and foster innovation. Indeed, we find that firms with … presence of poor earnings. More importantly, firms' R&D productivity — in terms of generating patents and patent citations … find that IPO firms setting higher offering prices have more future innovation and that innovation declines after firms …
Persistent link: https://www.econbiz.de/10013043874
This article analyses the market reaction to stock splits announcements, using a unique US sample over the period 2000 to 2009. Our event study finds a significantly positive Cumulative Average Abnormal Return (CAAR) around the announcement date. Liquidity increases lead to higher stock price...
Persistent link: https://www.econbiz.de/10014183766
We attempt to explain post-earnings announcement drift using the newly documented refinement of the disposition effect, which is the V-shaped net selling propensity (VNSP). Using a novel data set containing stock-level information on the trading activities of different types of investors, we...
Persistent link: https://www.econbiz.de/10014113621
This paper documents a negative relationship between pre-FOMC announcement returns and post-FOMC announcement returns, independent of the state of the economy and sample period. We propose and test a reversal strategy consisting in buying (selling) E-Mini S&P 500 just before the announcement, if...
Persistent link: https://www.econbiz.de/10014079186
Releases of key macroeconomic indicators are closely watched by financial markets. We investigate the role of expectation dispersion and economic uncertainty for the stock-market reaction to indicator releases. We find that the strength of the financial market response to news decreases with the...
Persistent link: https://www.econbiz.de/10013251271
I employ a classification of headlines from newspapers and wire services to examine whether stalemacroeconomic news affects stock prices. Unlike with individual stocks, the cost of obtaininginformation about major economic releases is relatively low. Thus, stock prices should adjust toeconomic...
Persistent link: https://www.econbiz.de/10012940134