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Voluntary Disclosure of Externally Sourced Technological Innovation and Managerial Opportunism: Evidence from the Korean Stock Market
Author(s) -
Kim Kyung Soon,
Lee Jin Hwon,
Park Yun Woo
Publication year - 2018
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12207
Subject(s) - opportunism , business , alliance , voluntary disclosure , equity (law) , quality (philosophy) , stock (firearms) , accounting , industrial organization , technology transfer , stock market , monetary economics , economics , market economy , international trade , mechanical engineering , paleontology , philosophy , epistemology , horse , political science , law , biology , engineering
This study aims to investigate the information effect of voluntary disclosure of externally sourced technological innovation by type of technological innovation, namely, in‐bound technology transfer, out‐bound technology transfer, and technological alliance. Long‐term performance is lower for firms with lower quality accounting information and this effect is most evident in the disclosure of an in‐bound technology transfer. Further, low disclosure quality firms undergo a greater decline in long‐term performance after a seasoned equity offering following the disclosure of an in‐bound technology transfer than high disclosure quality firms. This relationship is more pronounced during a bear market than during a bull market.