In modern economies, technological knowledge can flow between firms through various channels. We test an economic theory that firms most likely to benefit from such knowledge flows disclose information about their technologies more readily, probably to attract technologically compatible...

We examine how the strengthened legal protection of novel designs prevents mimicking behaviors and thus enhances the economic value of novel designs and their assignees. Using an unexpected decision of the Federal Circuit Court of Appeals, we show that more intricate designs (which were more...

We analyze, theoretically and empirically, the implications of salience on innovation announcements in the biopharmaceutical industry. We hypothesize that equity market investors are more likely to pay attention to an innovation announcement that is more salient: thus, investors pay more...

We analyze, theoretically and empirically, how salience affects the market reaction to innovation announcements. Hypothesizing that equity market investors pay more attention to more salient announcements, we develop a dynamic model with limited investor attention of patent grant and FDA drug...

We decompose the difference between a firm’s market and book values into two components: intangible assets that can be created by competing firms through SG&A/R&D expenditures, and the residual denoted as franchise value (FV). The estimated parameters in the model for creating intangible...

Bolton, Scheinkman, and Xiong (2006) model a setting where investors disagree and short-sales constraints cause pessimistic views of stock prices to be less influential, which leads to speculative stock prices. A theoretical implication of the model is that existing shareholders can exploit the...