News: Seminari

Seminario di Justin Chircop

ore 12.30 Sala Seminari – I° piano, Palazzo Levi Cases, Via del Santo 33

22.05.2017

Accounting Comparability and Corporate Innovative Efficiency

Seminario di Justin Chircop, Lancaster University

We posit that when a subject firm has greater accounting comparability with industry peer firms it facilitates that firm’s learning from peer firm investments leading to better investments by the subject firm. Therefore, we expect firms with greater accounting comparability with industry peers to generate more and higher quality innovations, which are key determinants of corporate innovative efficiency. In the cross-section, we expect that the benefits from learning are likely greater (smaller) when peer-firms are successful (unsuccessful) innovators. Moreover, we expect the benefits of greater accounting comparability to be greater in highly competitive business environments. We find that accounting comparability with peer firms is positively associated with innovative efficiency of subject firms. Moreover, this association is stronger when peers have successful innovations and for firms in industries with high product similarity and strong product market competition.