File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1016/j.jcorpfin.2015.09.005
- Scopus: eid_2-s2.0-84945138611
- WOS: WOS:000366771100019
Supplementary
- Citations:
- Appears in Collections:
Article: Corporate Innovation, Default Risk, and Bond Pricing
Title | Corporate Innovation, Default Risk, and Bond Pricing |
---|---|
Authors | |
Keywords | Bond premium Bond return Default risk Innovation Patent |
Issue Date | 2015 |
Citation | Journal of Corporate Finance, 2015, v. 35, p. 329-344 How to Cite? |
Abstract | We propose firm-level innovation performance to be an important determinant of corporate creditworthiness and examine such a relation from the perspective of bond investors. We find that firms’ default probabilities are negatively related to the quantity, impact, originality, and generality of their patent portfolios. Moreover, bonds issued by more innovative firms have lower issuance premiums and lower realized excess returns. Our findings are further supported by instrumental regressions that use monetary and time costs of innovation, and by difference-in-differences tests based on exogenous shocks from state-level R&D tax credits. |
Persistent Identifier | http://hdl.handle.net/10722/220227 |
SSRN | |
ISI Accession Number ID |
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Hsu, P | - |
dc.contributor.author | Lee, H | - |
dc.contributor.author | Liu, Z | - |
dc.contributor.author | Zhang, Z | - |
dc.date.accessioned | 2015-10-16T06:33:07Z | - |
dc.date.available | 2015-10-16T06:33:07Z | - |
dc.date.issued | 2015 | - |
dc.identifier.citation | Journal of Corporate Finance, 2015, v. 35, p. 329-344 | - |
dc.identifier.uri | http://hdl.handle.net/10722/220227 | - |
dc.description.abstract | We propose firm-level innovation performance to be an important determinant of corporate creditworthiness and examine such a relation from the perspective of bond investors. We find that firms’ default probabilities are negatively related to the quantity, impact, originality, and generality of their patent portfolios. Moreover, bonds issued by more innovative firms have lower issuance premiums and lower realized excess returns. Our findings are further supported by instrumental regressions that use monetary and time costs of innovation, and by difference-in-differences tests based on exogenous shocks from state-level R&D tax credits. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Corporate Finance | - |
dc.subject | Bond premium | - |
dc.subject | Bond return | - |
dc.subject | Default risk | - |
dc.subject | Innovation | - |
dc.subject | Patent | - |
dc.title | Corporate Innovation, Default Risk, and Bond Pricing | - |
dc.type | Article | - |
dc.identifier.email | Hsu, P: paulhsu@hku.hk | - |
dc.identifier.email | Lee, H: hhlee@hku.hk | - |
dc.identifier.authority | Hsu, P=rp01553 | - |
dc.identifier.authority | Lee, H=rp01556 | - |
dc.identifier.doi | 10.1016/j.jcorpfin.2015.09.005 | - |
dc.identifier.scopus | eid_2-s2.0-84945138611 | - |
dc.identifier.hkuros | 255612 | - |
dc.identifier.isi | WOS:000366771100019 | - |
dc.identifier.ssrn | 2024776 | - |