Small innovators: No risk, No return

• 成果类型: Article
• 署名作者: Stoffman, Noah; Woeppel, Michael; Yavuz, M. Deniz
• 署名单位: Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Purdue University System; Purdue University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2022.101492
• 发表日期: 2022
• 关键词: research-and-development; cross-section; Accounting information; corporate governance; stock returns; small firms; disclosure; earnings; patents; GROWTH

摘要

We show that small innovators (i.e., small firms with recent patent grants) earn higher future returns than small non-innovators. However, we find no such innovation premium among large firms. The higher returns are driven by risk, not underreaction to an-nouncements of recent patent grants. We find that being small and innovative interacts with financial constraints to explain the higher returns. These interactions are more important in the presence of greater information asymmetry. The higher cost of equity among small innovators has implications for their investment, growth, and capital struc-ture decisions.