Although the values of innovations greatly differ, prior studies on diversification and innovation focused only on the quantity of inventive outputs without considering the economic impacts on shareholders value. This study investigates the influence of corporate diversification on the wealth effect of patent grants announcements. We find that focused firms experience significantly greater market reactions to patent announcements than diversified firms. In addition, we find that diversification into related industries has little effect on the wealth gains of granted patents, but diversification into unrelated industries significantly damages the economic impacts of patents. Those findings are robust to different definitions of industry relatedness, and remain unchanged even after controlling other determinants.
|出版狀態||Published - 2006 12月 1|
|事件||66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States|
持續時間: 2006 8月 11 → 2006 8月 16
|Other||66th Annual Meeting of the Academy of Management, AOM 2006|
|期間||06-08-11 → 06-08-16|
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