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Innovation disclosure in times of uncertainty

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  • Mario Daniele Amore

Abstract

A recent literature shows that many firms 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 U.S. listed companies show that 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.

Suggested Citation

  • Mario Daniele Amore, 2020. "Innovation disclosure in times of uncertainty," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 792-815, October.
    • Handle: RePEc:bla:jemstr:v:29:y:2020:i:4:p:792-815
    DOI: 10.1111/jems.12390
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    References listed on IDEAS

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    Cited by:

    1. Lu Xu & Jie Xiong & Jie Yan & Richard Soparnot & Zhe Yuan, 2023. "Technological Uncertainty and Catch-Up Patterns: Insights of Four Chinese Manufacturing Sectors," Post-Print hal-04011634, HAL.
    2. Lu Xu & Jie Xiong & Jie Yan & Richard Soparnot & Zhe Yuan, 2023. "Technological Uncertainty and Catch-Up Patterns: Insights of Four Chinese Manufacturing Sectors," Grenoble Ecole de Management (Post-Print) hal-04011634, HAL.
    3. Mario Daniele Amore & Margherita Corina, 2021. "Political elections and corporate investment: International evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(9), pages 1775-1796, December.

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