TY - JOUR
T1 - Innovation, market share and firm value
T2 - Evidence from personal computer industries
AU - Tsai, Bi-Huei
PY - 2007/2/22
Y1 - 2007/2/22
N2 - Innovation effects on firm value have not been effectively discussed because previous studies ignore the market share and tax shields from Research and Development (R&D). This paper explores how innovation increases firm value through market shares of Personal Computer (PC) firms. The results exhibit that patent performance and tax shields are positively related to firm value. Our investigation also shows that dominant firms are more highly involved in innovative activities to maintain market power. The marginal benefit of innovation becomes greater for firms with stronger market share, which supports the complementary effect of market shares and innovations on firm value.
AB - Innovation effects on firm value have not been effectively discussed because previous studies ignore the market share and tax shields from Research and Development (R&D). This paper explores how innovation increases firm value through market shares of Personal Computer (PC) firms. The results exhibit that patent performance and tax shields are positively related to firm value. Our investigation also shows that dominant firms are more highly involved in innovative activities to maintain market power. The marginal benefit of innovation becomes greater for firms with stronger market share, which supports the complementary effect of market shares and innovations on firm value.
KW - Accounting standards
KW - Innovation
KW - Market share
KW - Patent
UR - http://www.scopus.com/inward/record.url?scp=33847025292&partnerID=8YFLogxK
U2 - 10.1504/IJSS.2007.011829
DO - 10.1504/IJSS.2007.011829
M3 - Article
AN - SCOPUS:33847025292
SN - 1740-8849
VL - 3
SP - 79
EP - 96
JO - International Journal of Services and Standards
JF - International Journal of Services and Standards
IS - 1
ER -