R&D, patents, citations, and firm market performance: New insights from quantile regression

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Conference Proceeding

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In this study we examine how the effect of innovation stocks (R&D stock, patent stock, and citation stock) on the market performance varies across leading and laggard firms. To do so, we build on prior work and use a quantile regression approach¬—as opposed to the standard method of conditional-mean based regression approaches—to distinguish between the effects on leading firms and laggard firms. Our results suggest that the value of innovation stocks varies with who possesses them. Specifically, the impact of innovation stocks on market performance is higher for leading firms than for laggard firms. Further, the impact of R&D stock is lower than the impact of both patent and citation stocks for laggard firms, whereas the impact of R&D stock is higher than the impact of patent and citation stocks for leading firms.

Publisher's Statement

© 2014 Academy of Management. Publisher's version of record: http://dx.doi.org/10.5465/AMBPP.2014.16274abstract

Publication Title

Academy of Management Proceedings