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 …

We quantify the effect of a significant technological innovation, shale oil development, on asset prices. Using stock …

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 …

&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 …

rents; however, there is limited evidence regarding the impact of innovation on risk. We shed new light on how firms …' involvement in innovation activities impacts their volatility, particularly their idiosyncratic volatility. In this paper, we … empirically examine the effect of innovation on idiosyncratic volatility. To do so, we empirically examine the impact of …

We find that network centrality is associated with a higher number and better quality of innovation. Network centrality …

We analyze 7.7 million patents via textual analysis to develop a novel patent-to-patent measure of innovation …' technological connectedness. We find that investors impound information about innovation similarity into stock prices, although not … coverage of technologically similar pairs. In contrast with technological similarity determined with patent class filings, our …

I study financial product innovation in a model with two classes of agents: “sophisticated” and “unsophisticated … competitors who have already adopted them. The model yields two equilibria: in one, the innovation persists; in the other, it … innovation literature. Additionally, two applications demonstrate how to estimate the contagion parameter with a short time …

We introduce and test a firm-level innovation-efficiency measure new to the finance literature. The measure, RQ … correlation with existing innovation input, output and efficiency measures. We test RQ in a number of innovation tests common to … innovation measures. The results suggest that RQ may serve as a relevant complementary measure of a company's innovation …

Do financial derivatives enhance or impede innovation? We aim to answer this question by examining the relationship … between equity options markets and standard measures of firm innovation. Our baseline results show that firms with more … options trading activity generate more patents and patent citations per dollar of R&D invested. We then investigate how more …