Innovation, future earnings, and market efficiency

Journal of Accounting, Auditing and Finance

Volumn 20, Issue 4, 2005, Pages 385-418

  Feng, G U ^a  

^a 325 Jacobs Management Center   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 32044466961     PISSN: 0148558X     EISSN: None     Source Type: Journal    
DOI: 10.1177/0148558x0502000405     Document Type: Review

References (64)

1. Abarbanell, J., and V. Bernard. 1992. "Tests of Analysts' Overreaction/Underreaction to Earnings Information as an Explanation for Anomalous Stock Price Behavior." Journal of Finance 47: 1187-1207.
2. American Accounting Association (AAA), Financial Accounting Standards Committee. 2002. "Recommendations on Disclosure of Nonfinancial Performance Measures." Accounting Horizons 16, no. 4: 353-362.
3. American Institute of Certified Public Accountants (AICPA). 1994. Improving Business Reporting - A Customer Focus. New York: AICPA.
4. Amir, E., and B. Lev. 1996. "Value-relevance of Nonfinancial Information: The Wireless Communication Industry." Journal of Accounting and Economics 22: 3-30.
5. Amir, E., B. Lev and T. Sougiannis. 2003. "Do Financial Analysts Get Intangibles?" European Accounting Review 12, no. 4: 635-659.
6. Banker, R., G. Potter and D. Srinivasan. 2000. "An Empirical Investigation of an Incentive Plan That Includes Nonfinancial Performance Measures." Accounting Review 75: 65-92.
7. Beaver, W. 1970. "The Time Series Behavior of Earnings." Journal of Accounting Research 8: 62-99.
8. Behn, B., and R. Riley. 1999. "Using Nonfinancial Measures to Predict Financial Performance: The Case of the U.S. Airline Industry." Journal of Accounting, Auditing, and Finance 14: 29-56.
9. Bernard, V., and J. Thomas. 1990. "Evidence That Stock Prices Do Not Fully Reflect the Implications of Current Earnings for Future Earnings." Journal of Accounting and Economics 13: 305-340.
10. Bradshaw, M., S. Richardson and R. Sloan. 2001. "Do Analysts and Auditors Use Information in Accruals?" Journal of Accounting Research 39: 45-74.
11. Bresnahan, T. 1985. "Post-entry Competition in the Plain Paper Copier Market." American Economic Review 75: 15-19.
12. Bright, A. 1949. The Electric Lamp Industry. New York: Macmillan.
13. Brown, L. 2001. "A Temporal Analysis of Earnings Surprises: Profits Versus Losses." Journal of Accounting Research 39: 221-242.
14. Chan, L., J. Lakonishok and T. Sougiannis. 2000. "The Stock Market Valuation of Research and Development Expenditures." Journal of Finance 56: 2431-2456.
15. Damodaran, A. (2001). The Dark Side of Valuation: Valuing Old Tech, New Tech and New Economy Companies. Upper Saddle River, NJ: Financial Times Prentice Hall.
16. Demers, E.. and B. Lev. 2001. "A Rude Awakening: Internet Value Drivers in 2000." Review of Accounting Studies 6: 331-359.
17. Deng, Z., B. Lev and F. Narin. 1999. "Science and Technology as Predictors of Stock Performance." Financial Analysts Journal 55: 20-32.
18. Eccles, R., R. Herz, E. Keegan and D. Phillips. (2001). The Value Reporting Revolution. New York: Wiley.
19. Elgers, P., and H. Lo. 1994. "Reductions in Analysts' Annual Earnings Forecast Errors Using Information in Prior Earnings and Security Returns." Journal of Accounting Research 32: 290-303.
20. Fama, E., and K. French. 1992. "The Cross Section of Expected Stock Returns." Journal of Finance 47: 427-465.
21. Fama, E., and J. MacBeth. (1973). "Risk, Return, and Equilibrium - Empirical Tests." Journal of Political Economy 81: 607-636.
22. FASB (Financial Accounting Standards Board). 1980. Statement of Financial Accounting Concepts No. 2: Qualitative Characteristics of Accounting Information. Norwalk, CT.
23. _. 2001. Improving Business Reporting: Insights Into Enhancing Voluntary Disclosures. Steering Committee Report, Business Reporting Research Project, Norwalk, CT.
24. Freeman, R., J. Ohlson and S. Penman. 1982. "Book Rate-of-return and Prediction of Earnings Changes: An Empirical Investigation." Journal of Accounting Research 20: 3-42.
25. Griliches, Z., ed. 1984. R&D, Patents, and Productivity. Chicago: University of Chicago Press.
26. Griliches, Z., B. Hall and A. Pakes. 1988. "R&D, Patents and Market Value Revisited: Is There a Second (Technological Opportunity) Factor?" Working Paper no. 2624, National Bureau of Economic Research.
27. Gu, F., and B. Lev. 2002. "On the Relevance and Reliability of R&D." Working Paper, Stern School of Business, New York University.
28. Gu, F., and B. Lev. 2004. "The Information Content of Royalty Income." Accounting Horizons 18: 1-12.
29. Hall, B., A. Jaffe and M. Trajtenberg. 2000. "Market Value and Patent Citations: A First Look." Working Paper no. 7741, National Bureau of Economic Research.
30. Hall, B., A. Jaffe and M. Trajtenberg. 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools." Working Paper no. 8498, National Bureau of Economic Research.
31. Holmer, A. 1999. "New Drug Approvals in 1998." Washington, D.C.: Pharmaceutical Research and Manufacturers of America.
32. Hwang, L., C. Jan and S. Basu. 1996. "Loss Firms and Analysts' Earnings Forecast Errors." Journal of Financial Statement Analysis 1: 18-30.
33. Ittner, C., and D. Larcker. 1998a. "Are Nonfinancial Measures Leading Indicators of Financial Performance? An Analysis of Customer Satisfaction." Journal of Accounting Research 36 (suppl.): 1-36.
34. Ittner, C., and D. Larcker. 1998b. "Innovations in Performance Measurement: Trends and Research Implications." Journal of Management Accounting Research 10: 205-238.
35. Kerin, R., P. Varadarajan and R. Peterson. 1992. "First-Mover Advantage: A Synthesis, Conceptual Framework, and Research Propositions." Journal of Marketing 56: 33-52.
36. Lang, M., and R. Lundholm. 1996. "Corporate Disclosure Policy and Analyst Behavior." Accounting Review 11: 467-492.
37. Lanjouw, J., and M. Schankerman, 2001. "Characteristics of Patent Litigation: A Window on Competition." Rand Journal of Economics 32: 129-151.
38. Lev, B. 2001. Intangibles: Management, Measurement, and Reporting. Washington, D.C.: Brookings Institution Press.
39. Lev, B., and T. Sougiannis. 1996. "The Capitalization, Amortization, and Value-Relevance of R&D." Journal of Accounting and Economics 21: 107-138.
40. Lieberman, M., and D. Montgomery. 1988. "First-Mover Advantages." Strategic Management Journal 9: 41-58.
41. Lim, T. 2001. "Rationality and Analysts' Bias." Journal of Finance 56: 369-385.
42. Mashruwala, C., S. Rajgopal and T. Shevlin. 2004. "Why Is the Accrual Anomaly Not Arbitraged Away?" Working Paper, University of Washington.
43. Mishkin, F. 1983. A Rational Expectations Approach to Macroeconometrics: Testing Policy Effectiveness and Efficient Markets Models. Chicago: University of Chicago Press.
44. Pakes, A. 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks." Econometrica 55: 755-784.
45. Patel, P., and K. Pavitt. 1995. "Patterns of Technological Activity: Their Measurement and Interpretation." In Handbook of the Economics of Innovations and Technological Change. Edited by P. Stoneman, 14-51. Cambridge, MA: Blackwell.
46. Perkins, A., and M. Perkins. 1999. The Internet Bubble. New York: Harper Business.
47. Rajgopal, S., T. Shevlin and M. Venkatachalam. 2003. "Does the Stock Market Fully Appreciate the Implications of Leading Indicators for Future Earnings? Evidence from Order Backlog." Review of Accounting Studies 8: 461-492.
48. Rajgopal, S., M. Venkatachalam and S. Kotha. 2003. "The Value Relevance of Network Advantages: The Case of E-Commerce Firms." Journal of Accounting Research 41: 135-141.
49. Rivette, K., and D. Kline. 2000. "Discovering New Value in Intellectual Property." Harvard Business Review 78: 55-66.
50. Romer, P. 1990. "Endogenous Technical Change." Journal of Political Economy 98: S71-S102.
51. Scherer, F. D. Harhoff and J. Kukies. 1998. "Uncertainty and the Size Distribution of Rewards from Technological Innovation." Journal of Evolutionary Economics 10: 175-200.
52. Securities and Exchange Commission (SEC). 2001. Strengthening Financial Markets: Do Investors Have the Information They Need? Washington, D.C.: Securities and Exchange Commission.
53. Shapiro, C. 1985. "Patent Licensing and R&D Rivalry." American Economic Review 75: 25-30.
54. Shapiro, C., and H. Varian. 1999. Information Rules. Boston: Harvard Business School Press.
55. Siegfried, J. 1998. "The Drug Development and Approval Process." Pharmaceutical newsletter.
56. Sloan, R. 1996. "Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings?" Accounting Review 71: 289-315.
57. Smith, B., and S. Mann. 2004. "Innovation and Intellectual Property Protection in the Software Industry: An Emerging Role for Patents?" University of Chicago Law Review 71: 241-264.
58. Spence, A. 1984. "Cost Reduction, Competition, and Industry Performance." Econometrica 52: 101-122.
59. Trajtenberg, M. 1989. "The Welfare Analysis of Product Innovations with an Application to Computed Tomography Scanners." Journal of Political Economy 97: 445-479.
60. Trajtenberg, M. 1990. "A Penny for Your Quotes: Patent Citations and the Value of Innovations." Rand Journal of Economics 21: 172-187.
61. Trueman, B., F. Wong and X. J. Zhang. 2000. "The Eyeballs Have It: Searching for Value in Internet Stocks." Journal of Accounting Research 38: 137-162.
62. Upton, W. 2001. Business and Financial Reporting: Challenges from the New Economy. Norwalk, CT: Financial Accounting Standards Board.
63. Warfield, T., and J. Wild. 1992. "Accounting Recognition and the Relevance of Earnings as an Explanatory Variable for Returns." Accounting Review 57: 821-842.
64. Xie, H. 2001. "Are Discretionary Accruals Mispriced? A Reexamination." Accounting Review 76: 357-373.