Patent Citations and Financial Analysts’ Long-Term Growth Forecasts
AbstractThis paper examines the influence of patent citations, a proxy for the quality of firms’ innovation outputs, on financial analysts’ long-term growth forecasts for firms. We find that financial analysts are more likely to issue long-term forecasts for firms with higher patent citations. In addition, we find that financial analysts’ long-term forecasts are more positive for firms with high patent citations. These results imply that patent citations increase financial analysts’ coverage, and result in more positive forecasts for firms with impactful patents. Considering that financial analysts play important roles in allocating financial resources in capital markets, our findings suggest that patents are valuable assets for firms in securing capital from capital markets, and are thus essential for the sustainable growth of firms. View Full-Text
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Bae, J.; Hur, W.; Lee, J.; Goh, J. Patent Citations and Financial Analysts’ Long-Term Growth Forecasts. Sustainability 2017, 9, 846.
Bae J, Hur W, Lee J, Goh J. Patent Citations and Financial Analysts’ Long-Term Growth Forecasts. Sustainability. 2017; 9(5):846.Chicago/Turabian Style
Bae, Jincheol; Hur, Wonchang; Lee, Jaehong; Goh, Jaimin. 2017. "Patent Citations and Financial Analysts’ Long-Term Growth Forecasts." Sustainability 9, no. 5: 846.
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