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Article: How good is good news? Technology depth, book-to-market ratio, and innovative events
Title | How good is good news? Technology depth, book-to-market ratio, and innovative events |
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Authors | |
Keywords | Abnormal returns Book-to-market ratio Innovative events Technology depth Value relevance of intangibles |
Issue Date | 2006 |
Publisher | Greenwood 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? |
Abstract | This 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 Identifier | http://hdl.handle.net/10722/85561 |
ISSN | 2023 Impact Factor: 1.3 2023 SCImago Journal Rankings: 0.854 |
SSRN | |
ISI Accession Number ID | |
References |
DC Field | Value | Language |
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dc.contributor.author | Liu, Q | en_HK |
dc.date.accessioned | 2010-09-06T09:06:35Z | - |
dc.date.available | 2010-09-06T09:06:35Z | - |
dc.date.issued | 2006 | en_HK |
dc.identifier.citation | Journal Of Accounting, Auditing And Finance, 2006, v. 21 n. 3, p. 293-321 | en_HK |
dc.identifier.issn | 0148-558X | en_HK |
dc.identifier.uri | http://hdl.handle.net/10722/85561 | - |
dc.description.abstract | This 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.language | eng | en_HK |
dc.publisher | Greenwood Publishing Group Inc. The Journal's web site is located at http://w4.stern.nyu.edu/ross/research.cfm?doc_id=1746 | en_HK |
dc.relation.ispartof | Journal of Accounting, Auditing and Finance | en_HK |
dc.subject | Abnormal returns | en_HK |
dc.subject | Book-to-market ratio | en_HK |
dc.subject | Innovative events | en_HK |
dc.subject | Technology depth | en_HK |
dc.subject | Value relevance of intangibles | en_HK |
dc.title | How good is good news? Technology depth, book-to-market ratio, and innovative events | en_HK |
dc.type | Article | en_HK |
dc.identifier.openurl | http://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+events | en_HK |
dc.identifier.email | Liu, Q: qliu@hku.hk | en_HK |
dc.identifier.authority | Liu, Q=rp01078 | en_HK |
dc.description.nature | postprint | - |
dc.identifier.doi | 10.1177/0148558X0602100305 | - |
dc.identifier.scopus | eid_2-s2.0-33748534158 | en_HK |
dc.identifier.hkuros | 130414 | en_HK |
dc.relation.references | http://www.scopus.com/mlt/select.url?eid=2-s2.0-33748534158&selection=ref&src=s&origin=recordpage | en_HK |
dc.identifier.volume | 21 | en_HK |
dc.identifier.issue | 3 | en_HK |
dc.identifier.spage | 293 | en_HK |
dc.identifier.epage | 321 | en_HK |
dc.identifier.isi | WOS:000211970000003 | - |
dc.publisher.place | United States | en_HK |
dc.identifier.ssrn | 248909 | - |
dc.identifier.scopusauthorid | Liu, Q=55429572300 | en_HK |
dc.identifier.issnl | 0148-558X | - |