Evidence from European listed companies

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School of Business | Bachelor's thesis
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Date

2019

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Mcode

Degree programme

Rahoitus

Language

en

Pages

22

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Abstract

This thesis analyses the effects of R&D spillover on European equities. Contrary to previous studies in the US, I find little evidence that companies’ R&D increases predict abnormal stock returns for their peers. Moreover, it appears that firms operating in high R&D growth industries who have little R&D growth of their own experience weaker returns compared with the rest of the sample. This result suggests that any value investors place on R&D spillover pales in comparison to the implicit loss of competitive advantage.

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Thesis advisor

Shin, Sean

Keywords

R&D, spillover, innovation, externalities

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