A recent literature shows that firms often feature missing R&D expenses in their accounting statements. This study explores how economic policy uncertainty affects the decision to disclose innovation-related information. Empirical analyses on a panel of US listed companies show that economic policy uncertainty increases the likelihood of missing R&D (as opposed to both positive and zero R&D). This result is more pronounced for firms that enjoy a leadership position in their industry, firms in states subject to a weaker legal protection of internal knowledge, and firms that rely more on government demand. During uncertain times, firms also file patents that exhibit a greater textual vagueness. Finally, the evidence suggests that missing R&D helps firms alleviate the negative impact of policy uncertainty on market value.

Innovation disclosure in times of uncertainty

Mario Daniele Amore
2020

Abstract

A recent literature shows that firms often feature missing R&D expenses in their accounting statements. This study explores how economic policy uncertainty affects the decision to disclose innovation-related information. Empirical analyses on a panel of US listed companies show that economic policy uncertainty increases the likelihood of missing R&D (as opposed to both positive and zero R&D). This result is more pronounced for firms that enjoy a leadership position in their industry, firms in states subject to a weaker legal protection of internal knowledge, and firms that rely more on government demand. During uncertain times, firms also file patents that exhibit a greater textual vagueness. Finally, the evidence suggests that missing R&D helps firms alleviate the negative impact of policy uncertainty on market value.
2020
2020
Amore, Mario
File in questo prodotto:
File Dimensione Formato  
JEMS acceptance.pdf

non disponibili

Tipologia: Allegato per valutazione Bocconi (Attachment for Bocconi evaluation)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 44.17 kB
Formato Adobe PDF
44.17 kB Adobe PDF   Visualizza/Apri
JEMS Final Version.pdf

non disponibili

Tipologia: Documento in Pre-print (Pre-print document)
Licenza: NON PUBBLICO - Accesso privato/ristretto
Dimensione 509.11 kB
Formato Adobe PDF
509.11 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/4027784
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 5
  • ???jsp.display-item.citation.isi??? 6
social impact