Corporate innovation in relation to IPO, enterprise value and R&D expenditures: evidence from Finnish companies gone public

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School of Business | Bachelor's thesis
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2017

Department

Rahoituksen laitos

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Mcode

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Rahoitus

Language

en

Pages

27

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Abstract

In this paper, I examine the innovation activities of Finnish companies that have conducted an initial public offering during 1988-2012. The study provides novel analysis on innovations in relation to IPO, enterprise value and innovation investment within important Finnish companies. First, using unique innovation data collected by Technical Research Centre of Finland (VTT) and national patent data, I find that going public increases the number of innovations and patents while it affects negatively on the innovation novelty for Finnish market and increases the novelty for international markets. The novelty effect is emphasized within high-tech industry while also patent data supports a transition to international markets. Second, emphasizing the importance of innovations on performance, I find that innovations have a positive effect on enterprise value. Third, regarding the financing of innovations, the findings support a close link between increased R&D expenditures and innovations as well as indicate that more complex innovations tend to receive more public subsidies for development.

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Thesis advisor

Onal, Bunyamin

Keywords

innovation, initial public offering, enterprise value, R&D expenditure, patent

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https://urn.fi/URN:NBN:fi:aalto-201803281913

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[kand] Kauppakorkeakoulu / BIZ (Open Access)