Innovation Indicators and Corporate Credit Ratings: Evidence from German Firms
Posted: 12 Jan 2005
Most of the empirical literature on the relationship between firm value and knowledge capital is based on the stock market valuation. We use a credit rating score as an alternative measure. Innovative firms with a reasonable knowledge stock achieve a better rating, whilst too many innovative activities reduce the rating.
Keywords: Firm value, credit rating, innovation, intellectual property, discrete regression models
JEL Classification: C25, O31, O33
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