How analyst coverage may affect corporate innovation remains unclear. We suggest that when the manager is myopic due to pressure from financial analysts and decides to reduce innovation, the firm should retain better innovation projects and forego worse projects. Accordingly, the average value...

An extensive literature shows that R&D intensities and increases are positively related to firm performance, but little research examines the valuation of R&D reductions. This paper fills the void by studying long-term performance following R&D reductions. We find that, contrary to conventional...

A rich literature argues that stock repurchases often serve as positive economic signals beneficial to investors. Yet due to their inherent flexibility, open market repurchase programs have long been criticized as weak signals lacking commitment. We evaluate whether some managers potentially use...

In this paper, we empirically investigate how staggered boards, a prevailing governance structure of high-tech firms, influence firms’ product innovations in the United States. We explore a quasi-natural experiment of a legislation change in Massachusetts that forced the adoption of staggered...

We examine how firms react to their competitors' highly publicized technology breakthroughs measured by the renowned R&D 100 Award. These awards have been granted to top 100 technological inventions every year since 1965 and have come to be known as the “Oscar of Invention” (e.g., Verhoeven,...

We examine how cross-sectional stock returns are influenced by research and development (R&D) spending funded by the public sector, which accounts for a substantial portion of total U.S. investments in innovation. Firms located in states with more public R&D spending earn higher abnormal stock...

This paper examines whether and to what extent the Uniform Trade Secrets Act (UTSA) affects technology spillovers between focal firms (i.e., receivers of spillovers) and peers (i.e., senders of spillovers). I find that technology spillovers from peers located in states adopting the UTSA are 27%...