Linguistic nuances and the valuation of corporate investments in innovation

IF 6.9 2区经济学 Q1 BUSINESS, FINANCE Finance Research Letters Pub Date : 2025-06-01 Epub Date: 2025-03-25 DOI:10.1016/j.frl.2025.107206

Michael Machokoto , Tesfaye T. Lemma , Reon Matemane

引用次数: 0

Abstract

Based on data drawn from 45 countries covering the period 1981–2019, we explore whether and how future time reference in languages (FTR) influences the relationship between corporate innovation investments and firm value. We find a positive association between corporate investments in innovation and firm value, with this association being more pronounced for firms in weak-FTR countries. These findings are robust to various concerns and provide novel insights into the role of language, an informal institution, in shaping the relevance and valuations of corporate decisions by capital markets. The findings underscore the necessity of accounting for not only formal institutional frameworks but also informal sociocultural factors in shaping the capital market dynamics of shareholder value — an aspect that has thus far received limited attention compared to the focus on formal institutions in extant literature.

查看原文

微信好友朋友圈 QQ好友复制链接

本刊更多论文

语言的细微差别与企业创新投资的估值

基于1981-2019年45个国家的数据，我们探讨了未来语言时间参考（FTR）是否以及如何影响企业创新投资与企业价值之间的关系。我们发现，企业在创新方面的投资与企业价值之间存在正相关关系，这种关联在ftr较弱国家的企业中更为明显。这些发现有力地解决了各种问题，并为语言（一种非正式制度）在资本市场塑造公司决策的相关性和估值方面的作用提供了新的见解。研究结果强调，在形成股东价值的资本市场动态时，不仅需要考虑正式的制度框架，还需要考虑非正式的社会文化因素——与现有文献中对正式制度的关注相比，这方面迄今受到的关注有限。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文去求助

来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance