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Article: How good is good news? Technology depth, book-to-market ratio, and innovative events

TitleHow good is good news? Technology depth, book-to-market ratio, and innovative events
Authors
KeywordsAbnormal returns
Book-to-market ratio
Innovative events
Technology depth
Value relevance of intangibles
Issue Date2006
PublisherGreenwood Publishing Group Inc. The Journal's web site is located at http://w4.stern.nyu.edu/ross/research.cfm?doc_id=1746
Citation
Journal Of Accounting, Auditing And Finance, 2006, v. 21 n. 3, p. 293-321 How to Cite?
AbstractThis paper examines the stock market reactions to the U.S. biotech firms' innovation news announcements during 1983-93. In addition to the positive abnormal returns observed during the announcement period, the paper identifies a medium-horizon negative drift in the stock price subsequent to firms' innovative events. The observed negative drift is robust to the benchmarks and procedures used in calculating the abnormal returns. Cross-sectional analysis demonstrates that the postannouncement abnormal returns are positively related to a firm's technology depth (measured by research and development [R&D] intensity) and book-to-market ratio, negatively related to the size. The evidence favors the investor expectational errors hypothesis and suggests that R&D or other intangibles are market-value relevant in the high-tech firms.
Persistent Identifierhttp://hdl.handle.net/10722/85561
ISSN
2015 SCImago Journal Rankings: 0.471
SSRN
References

 

DC FieldValueLanguage
dc.contributor.authorLiu, Qen_HK
dc.date.accessioned2010-09-06T09:06:35Z-
dc.date.available2010-09-06T09:06:35Z-
dc.date.issued2006en_HK
dc.identifier.citationJournal Of Accounting, Auditing And Finance, 2006, v. 21 n. 3, p. 293-321en_HK
dc.identifier.issn0148-558Xen_HK
dc.identifier.urihttp://hdl.handle.net/10722/85561-
dc.description.abstractThis paper examines the stock market reactions to the U.S. biotech firms' innovation news announcements during 1983-93. In addition to the positive abnormal returns observed during the announcement period, the paper identifies a medium-horizon negative drift in the stock price subsequent to firms' innovative events. The observed negative drift is robust to the benchmarks and procedures used in calculating the abnormal returns. Cross-sectional analysis demonstrates that the postannouncement abnormal returns are positively related to a firm's technology depth (measured by research and development [R&D] intensity) and book-to-market ratio, negatively related to the size. The evidence favors the investor expectational errors hypothesis and suggests that R&D or other intangibles are market-value relevant in the high-tech firms.en_HK
dc.languageengen_HK
dc.publisherGreenwood Publishing Group Inc. The Journal's web site is located at http://w4.stern.nyu.edu/ross/research.cfm?doc_id=1746en_HK
dc.relation.ispartofJournal of Accounting, Auditing and Financeen_HK
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectAbnormal returnsen_HK
dc.subjectBook-to-market ratioen_HK
dc.subjectInnovative eventsen_HK
dc.subjectTechnology depthen_HK
dc.subjectValue relevance of intangiblesen_HK
dc.titleHow good is good news? Technology depth, book-to-market ratio, and innovative eventsen_HK
dc.typeArticleen_HK
dc.identifier.openurlhttp://library.hku.hk:4550/resserv?sid=HKU:IR&issn=0148-558X&volume=21 &issue=3&spage=293 &epage=321&date=2006&atitle=How+good+is+good+news?+technology+depth,+book-to-market+ratio,+and+innovative+eventsen_HK
dc.identifier.emailLiu, Q: qliu@hku.hken_HK
dc.identifier.authorityLiu, Q=rp01078en_HK
dc.description.naturepostprint-
dc.identifier.doi10.1177/0148558X0602100305-
dc.identifier.scopuseid_2-s2.0-33748534158en_HK
dc.identifier.hkuros130414en_HK
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-33748534158&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume21en_HK
dc.identifier.issue3en_HK
dc.identifier.spage293en_HK
dc.identifier.epage321en_HK
dc.publisher.placeUnited Statesen_HK
dc.identifier.ssrn248909-
dc.identifier.scopusauthoridLiu, Q=55429572300en_HK

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