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Article: High stakes in high technology: High-tech market values as options

TitleHigh stakes in high technology: High-tech market values as options
Authors
Darby, MRLiu, QZucker, LG
Issue Date2004
PublisherWiley-Blackwell Publishing, Inc.. The Journal's web site is located at http://www.wiley.com/bw/journal.asp?ref=0095-2583
Citation
Economic Inquiry, 2004, v. 42 n. 3, p. 351-369 How to Cite?
DOI: http://dx.doi.org/10.1093/ei/cbh066
AbstractIn science-based industries, world-class scientists drive the most successful firms. These scientists are more likely to follow high-stakes, high-returns R&D strategies instead of more predictable incremental strategies. We develop an options pricing model in which the probability of stock-price jumps increases with knowledge capital. GMM estimates show the probability of stock-price jumps increases with three measures of knowledge capital intensity, two of which can be reasonably estimated contemporaneously. The model explains most variation in biotech firm market values. Firms with two standard deviations more knowledge capital are valued 10-50% more than firms with mean values of all variables.
Persistent Identifierhttp://hdl.handle.net/10722/85728
ISSN
0095-2583
2023 Impact Factor: 1.7
2023 SCImago Journal Rankings: 1.159
ISI Accession Number ID
WOS:000222393500001
References
References in Scopus

 

DC FieldValueLanguage
dc.contributor.authorDarby, MRen_HK
dc.contributor.authorLiu, Qen_HK
dc.contributor.authorZucker, LGen_HK
dc.date.accessioned2010-09-06T09:08:29Z-
dc.date.available2010-09-06T09:08:29Z-
dc.date.issued2004en_HK
dc.identifier.citationEconomic Inquiry, 2004, v. 42 n. 3, p. 351-369en_HK
dc.identifier.issn0095-2583en_HK
dc.identifier.urihttp://hdl.handle.net/10722/85728-
dc.description.abstractIn science-based industries, world-class scientists drive the most successful firms. These scientists are more likely to follow high-stakes, high-returns R&D strategies instead of more predictable incremental strategies. We develop an options pricing model in which the probability of stock-price jumps increases with knowledge capital. GMM estimates show the probability of stock-price jumps increases with three measures of knowledge capital intensity, two of which can be reasonably estimated contemporaneously. The model explains most variation in biotech firm market values. Firms with two standard deviations more knowledge capital are valued 10-50% more than firms with mean values of all variables.en_HK
dc.languageengen_HK
dc.publisherWiley-Blackwell Publishing, Inc.. The Journal's web site is located at http://www.wiley.com/bw/journal.asp?ref=0095-2583en_HK
dc.relation.ispartofEconomic Inquiryen_HK
dc.titleHigh stakes in high technology: High-tech market values as optionsen_HK
dc.typeArticleen_HK
dc.identifier.openurlhttp://library.hku.hk:4550/resserv?sid=HKU:IR&issn=0095-2583&volume=42&issue=3&spage=351&epage=369&date=2004&atitle=High+stakes+in+high+technology:+high-tech+market+values+as+optionsen_HK
dc.identifier.emailLiu, Q: qliu@hku.hken_HK
dc.identifier.authorityLiu, Q=rp01078en_HK
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1093/ei/cbh066en_HK
dc.identifier.scopuseid_2-s2.0-3242696189en_HK
dc.identifier.hkuros105423en_HK
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-3242696189&selection=ref&src=s&origin=recordpageen_HK
dc.identifier.volume42en_HK
dc.identifier.issue3en_HK
dc.identifier.spage351en_HK
dc.identifier.epage369en_HK
dc.identifier.isiWOS:000222393500001-
dc.publisher.placeUnited Statesen_HK
dc.identifier.scopusauthoridDarby, MR=7005259649en_HK
dc.identifier.scopusauthoridLiu, Q=55429572300en_HK
dc.identifier.scopusauthoridZucker, LG=7003264387en_HK
dc.identifier.issnl0095-2583-

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