This paper examines the effect of innovation on performance of Small and Medium-sized Enterprises (SMEs). Using panel data from SMEs in Vietnam, we show that SMEs with innovation tend to perform better than SMEs without innovation. We further show that the positive effect of innovation on firm...

Firms can change their outstanding shares to manage their stock price levels. Those with lower stock prices tend to attract more speculative trading, which causes higher price volatility and may force their managers to excessively focus on short-term earnings at the expense of R&D and other...