Zantout, Zaher Z; Tsetsekos, George P - In: Journal of Financial Research 17 (1994) 2, pp. 205-16
We examine the effect of announcements of plans to increase R&D expenditures on the stock price of rival firms. We test two alternative hypotheses: the first-to-innovate hypothesis versus the free-rider of spillovers hypothesis. Analysis of 114 announcements of increases in R&D expenditures...