Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/28285
Title: R&D, knowledge spillovers and stock volatility
Authors: Fung, MK 
Keywords: Knowledge spillover
R&D
Stock volatility
Issue Date: 2006
Publisher: Wiley-Blackwell
Source: Accounting and finance, 2006, v. 46, no. 1, p. 107-124 How to cite?
Journal: Accounting and finance 
Abstract: Firms improve their know-how not only by innovations (producing new knowledge), but also by knowledge spillovers (learning from others). The objective of this study is to test for two major hypotheses developed from a theoretical model explaining the relationship between R&D, knowledge spillovers and stock volatility. Analytically, the model suggests that asymmetric information caused by R&D activities with uncertain future output increases stock volatility, even though dividends and consumptions remain unchanged. However, interfirm knowledge spillovers have a negative impact on stock volatility by reducing the degree of asymmetric information. Both hypotheses are supported by empirical evidence from this study.
URI: http://hdl.handle.net/10397/28285
ISSN: 0810-5391
EISSN: 1467-629X
DOI: 10.1111/j.1467-629X.2006.00166.x
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