Abstract:Companies regard innovation as a central element of their business. However, as not all innovation types are the same, the central question is: should their announcements bring about the same effect on performance? This article analyses potential differences in firm value derived from the innovation-type announcements 'R&D', 'product' and 'process', made by intensive news-generating firms such as biotech companies. The empirical application shows a significantly positive reaction to innovation announcements, w… Show more
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