Does Innovation Matter to Conference Calls?

IEEE Transaction on Engineering Management, Forthcoming

Pace University Accounting Research Paper No. 2006/02

55 Pages Posted: 27 Jan 2006

See all articles by Chen-lung Chin

Chen-lung Chin

National Chengchi University (NCCU) - Department of Accounting

Picheng Lee

Pace University - Department of Accounting

Gary Kleinman

Montclair State University

Abstract

The main purpose of this study is to investigate whether the likelihood, frequency and information content of conference calls are positively associated with innovation. The study is based on 534 conference calls conducted in 340 firm-years from 1997 to 2001 in Taiwan. Our findings indicate that more innovative firms are more likely to conduct conference calls and conduct them more frequently than less innovative firms. Consistent with prior research, high growth firms and larger firms are more likely to hold conference calls, and hold them more frequently, than other firms. Low price-earnings firms are nonetheless more likely and frequent to host conference calls when their stock price has been undervalued. We also find supporting evidence that cumulative abnormal returns surrounding the event dates of conference calls are positively associated with the level of and change in innovation investments. In addition, our empirical results of market reaction driven by conference calls are still robust after controlling the effect of selection bias, market expectation, and timing of conducting conference calls. Finally, we also find that firms that more innovative firms are more likely to discuss innovation activities during conference calls.

Keywords: Conference calls, innovation, research and development, patent value, patents, intellectual property

JEL Classification: M41, M45, M47, G12, G14, G29, O30

Suggested Citation

Chin, Chen-lung and Lee, Picheng and Kleinman, Gary, Does Innovation Matter to Conference Calls?. IEEE Transaction on Engineering Management, Forthcoming; Pace University Accounting Research Paper No. 2006/02. Available at SSRN: https://ssrn.com/abstract=878347

Chen-lung Chin

National Chengchi University (NCCU) - Department of Accounting ( email )

No. 64, Sec 2
Chih-Nan Road
Wenshan, Taipei
Taiwan

Picheng Lee (Contact Author)

Pace University - Department of Accounting ( email )

1 Pace Plaza
New York, NY 10038-1502
United States

Gary Kleinman

Montclair State University ( email )

NJ 07043
United States

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