INFLUENCE OF MANAGERIAL DECISIONS TO INVEST IN INNOVATIONS ON THE STOCK MARKET PERFORMANCE: AN EMPIRICAL ANALYSIS
Journal Title: Polish Journal of Management Studies - Year 2018, Vol 18, Issue 1
Abstract
This paper examines the hypothesis that management decisions to invest in innovations have an impact on business performance. We used the “Delta Intangible Assets to Sales Ratio” as a proxy variable for investments in innovations. With regard to the research results, it was shown that the “Delta Intangible Assets to Sales Ratio” can easily explain the company's performance in 24 months and highly significantly in 36 months. However, the quality of the explanation (R squared) assumes very low values. As investment volume in innovation increases, company management can increase the stock market performance. However, it is reasonable to note that management should consider the timing of the investment and the impact on performance. Thus, investing in innovation is strategic management decision.<br/><br/>
Authors and Affiliations
Tim Langenstein, Martin Užík, Jozef Glova
Keywords
Related Articles
- EP ID EP428252
- DOI 10.17512/pjms.2018.18.1.15
- Views 65
- Downloads 0
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