Do innovative firms communicate more? Evidence from the relation between patenting and management guidance

• Main Authors: HUANG, Sterling, NG, Jeffrey, RANASHINGHE, Tharindra, ZHANG, Mingyue
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Innovation; Patents; Voluntary Disclosure; Management Forecasts; Accounting; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1885; https://ink.library.smu.edu.sg/context/soa_research/article/2912/viewcontent/Do_Innovative_Firms_Communicate_More_av_2021.pdf
• Institution: Singapore Management University

Successful innovations could induce more disclosure if the information asymmetry between the firm and its investors about post-innovation outcomes leads investors to demand more information. However, such innovations also likely entail greater proprietary cost concerns, which deter disclosure. This...