The Impact of Large Technological Innovations on the Share Prices of Public Companies

Authors

  • Сергей Васильевич Валдайцев St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation
  • Артем Сергеевич Железнов PricewaterhouseCoopers, 4, Grivtsova lane, St.Petersburg, 190000, Russian Federation

Abstract

In the article, it is shown how expectations of high profits from radical innovations or merely big innovation projects —even if their probability is low due to the innovation risks —create the effect of considerable and long-living growth of the market capitalization of innovating companies. This growth stops only after the innovators have to publish negative commercial results of the relevant innovations. Soon after, the prices for the innovators’ stock fall. Later this cycle can be repeated. The article contains statistics from stock exchanges that confirm the analyzed effect.

Keywords:

innovations, radical and big innovation projects, market capitalization of innovating companies, effect of a «swinging boat», profit expectations, prices for stock, statistics of stock exchanges

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Author Biographies

Сергей Васильевич Валдайцев, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

доктор экономических наук, профессор, заведующий кафедрой экономики исследований и разработок

Артем Сергеевич Железнов, PricewaterhouseCoopers, 4, Grivtsova lane, St.Petersburg, 190000, Russian Federation

консультант в отделе аудита компаний финансового сектора «PricewaterhouseCoopers»

References

Литература на русском языке

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Валдайцев С. В. Управление инновационным бизнесом. М.: ЮНИТИ, 2001. С. 34–37.

На что «Apple» готова потратить 3,9 миллиарда долларов? // DeepApple. URL: http://deepapple.com/news/39195.html .

Портер М. Конкурентные преимущества. М.: Инфра-М, 2003.


References in Latin Alphabet

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Translation of references in Russian into English

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Published

2011-03-30

How to Cite

Валдайцев, С. В., & Железнов, А. С. (2011). The Impact of Large Technological Innovations on the Share Prices of Public Companies. St Petersburg University Journal of Economic Studies, (1), 054–071. Retrieved from https://economicsjournal.spbu.ru/article/view/2731

Issue

No. 1 (2011)

Section

Finance, Credit, Insurance

License

Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.

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