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Patent-related intellectual property and corporate investment

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  • Narayan, Paresh Kumar
  • Narayan, Seema
  • Tran, Vuong Thao

Abstract

This paper quantifies the impact of corporate innovation on corporate tangible investment for a large panel of U.S. firms. We show that corporate innovation (research and development, patents, citations, and patent value) positively influences tangible investment and the manner in which this effect transpires is characterized by a firm's external/internal dependence on finance, technological intensity, size, maturity, and payout policy. We discover that input- and output-type innovations affect corporate investment differently, with research and development (patent value) having the least (most) effect on investment. Our analysis reveals that corporate innovation moves investments more during economic expansions than during recessions.

Suggested Citation

  • Narayan, Paresh Kumar & Narayan, Seema & Tran, Vuong Thao, 2023. "Patent-related intellectual property and corporate investment," Finance Research Letters, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007061
    DOI: 10.1016/j.frl.2022.103530
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    3. Zheng, Panpan & Li, Zhen & Zhuang, Ziyin, 2023. "The impact of judicial protection of intellectual property on digital innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    4. Ho, Kung-Cheng & Yan, Cheng & Mao, Zhicheng & An, Jiafu, 2023. "Corporate sustainability policies and corporate investment efficiency: Evidence from the quasi-natural experiment in China," Energy Economics, Elsevier, vol. 127(PB).
    5. Shi, Xiaoxuan & Song, Yuchen & Wang, Xi, 2023. "Intellectual property rights enforcement and mergers and acquisitions: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).

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