Comparing the value revelance of R&D reporting in Germany: standard and selection effects

On the basis of accounting and market data for firms and groups listed on German stock exchanges between 1997 and 2003, we show that the value relevance of R&D information under German accounting standards can be superior to that provided by US-GAAP and IAS. The results, obtained while dynamically controlling for partial freedom of firms to choose a standard in a modified Q model, show that the risk of IAS/US-GAAP misinforming investors during "bear market" periods is more relevant than their comparative advantage over the prudence principle of the German Commercial Code in "bull market" periods. Using the approach chosen for this study, it is possible not only to draw a clear dividing line between standard and selection effects but also to disentangle them along theoretical lines more clearly than in earlier studies. --Accounting standards,standard selection,R&D,value relevance,Germany

Who do you trust while Shares are on a Roler-Coaster Ride? Balance Sheet and Patent Data as Sources of Investor Information During Volatile Market Times

We originally investigate the comparative usefulness of patent data as a source of investor information depending on the market cycle (bull/bear market). Based on comprehensive data for firms listed on German exchanges between 1997 and 2002, we demonstrate that patent data contain complementary explanatory power to accounting data irrespective of the standard used to prepare the financial statement (German GAAP, IAS and US GAAP). Moreover, we provide original evidence that only patent data are able to provide plausible investor information in both bull-market and bear-market periods, whereas accounting information overvalues intangible assets in bull markets and undervalues them in bears.Investor information, market value, patents

Who do you trust while bubbles grow and blow? A comparative analysis of the explanatory power of accounting and patent information for the market values of German firms

We present a theoretical and empirical analysis of the fitness of national German (German Commercial Code - Handelsgesetzbuch (HGB)) and international (IAS and US-GAAP) accounting information, as well as European patent data to explain the market values of German manufacturing firms. For the chosen volatile period from 1997 to 2002, cautious national accounting information does not correlate with the firms? residual market values (RMV). International accounting information makes no meaningful contribution to explaining firms? RMV and seems to measure overinvestment only. Finally, patents counted at the individual country level correlate with the firms? RMV

Gestão estratégica da propriedade intelectual

A propriedade intelectual representa hoje uma fatia importante do valor de mercado de muitas empresas, e a sua gestão já não pode ser apenas da responsabilidade dos departamentos de tecnologia ou jurídicos

testing current theory on value drivers of innovations within a structural two-stage discrete choice simultaneous equation model

Patent indicators are widely used to assess innovative output. Despite the large variety of empirical studies in the field, however, the precise meaning of these indicators and their obvious relation to patent value is still based on assumptions and intuitions. This paper provides the first empirical test of patent indicators as value measures in the structural form. It disentangles the different effects reflected in patent indicators and enhances our understanding why inventions are valuable at all. Using a newly assembled data set on European polymer patents, current assumptions on the innovation incentives set by patentability requirements (novelty, inventive activity) are tested. The estimations are carried out using a custom-tailored two stage discrete choice probit model yet unknown in the literature. The results support the assumptions that novelty and inventive activity enhance a patent’s value. They confirm the importance of backward citations, family size, and forward citations as va lue indicators. However, they expand on and partly break with the respective explanations why patent indicators correlate with profitability

Chance and Competitive Advantage

Chance or randomness as a mechanism to induce performance heterogeneity among originally homogeneous firms has recently been introduced to the resource-based view of the firm. In this paper, we demonstrate how chance can engender variation in performance among initially identical firms even in the absence of firm-level capability differences. Departing from the positional school of strategy, we show how and when firms in systemic industries benefit from the chance of staking positions vis-à-vis competitors in complex technology landscapes. Expectedly, the chance of making choices early and repeatedly increases a firm’s profitability. Also, the value of repeated chance is higher during the early stages of an industry’s evolution than during its later phases. Importantly, however, this latter effect is exacerbated by increases in competition

Balance Sheet and Patent Data as Sources of Investor Information During Volatile Market Times

We originally investigate the comparative usefulness of patent data as a source of investor information depending on the market cycle (bull/bear market). Based on comprehensive data for firms listed on German exchanges between 1997 and 2002, we demonstrate that patent data contain complementary explanatory power to accounting data irrespective of the standard used to prepare the financial statement (German GAAP, IAS and US GAAP). Moreover, we provide original evidence that only patent data are able to provide plausible investor information in both bull-market and bear-market periods, whereas accounting information overvalues intangible assets in bull markets and undervalues them in bears

Engineering Java 7's Dual Pivot Quicksort Using MaLiJAn

Wild S, Nebel M, Reitzig R, Laube U. Engineering Java 7's Dual Pivot Quicksort Using MaLiJan. In: Proceedings of the 15th Meeting on Algorithm Engineering and Experiments, ALENEX 2013, New Orleans, Louisiana, USA, January 7, 2013. Philadelphia, PA: Society for Industrial and Applied Mathematics; 2013: 55--69