| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1019061 | Journal of Business Research | 2009 | 6 Pages |
Abstract
This study investigates how the market pricing of an additional dollar of cash held by biotech firms is conditional upon the industry's typical performance, R&D innovation. Under the proposed R&D innovation regime, I find i) an additional dollar of cash is priced higher if held by a firm with higher R&D innovation; ii) the role of R&D innovation is asymmetric depending on whether R&D activities move the drug discovery and development forward or backward; and iii) R&D innovation also differentiates the association between investment opportunities and value of cash observed by prior studies.
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Authors
Bixia Xu,