PATENT PUBLICATION AND COST OF CAPITAL: An analysis of companies negotiated on B3
DOI:
https://doi.org/10.4270/ruc.2023115Keywords:
Patent, Process Innovation, Disclosure, Information asymmetry. Distortions in the real estate market. Real estate depreciation. Fair value., Cost of capitalAbstract
This study aims to verify the relationship between the innovation disclosure and the implied cost of capital of publicly traded companies negotiated on B3. Therefore, the innovation disclosure is analyzed from the perspective of patent publication and seeks to verify the relationship with the implied cost of capital mediated by information asymmetry. For this purpose, the study has a sample of 91 companies traded on B3 from 2014 to 2019. The data were analyzed quarterly using panel data regression. The cost of capital was considered the dependent variable of the model, measured by the Easton (2004) model; the information asymmetry was considered the mediating variable, measured by the proxies: bid-ask spread, volatility, illiquidity on the stock exchange and probability of informed trading; the publication of patents in the period refers to the independent variable period. The results indicated that patent publication maintains a negative relationship with the implied cost of capital, which is mediated by asset volatility. Thus, patent publication can be an effective instrument for reducing information asymmetries, allowing investors to have access to relevant information about innovations and to reassess their expectations regarding the firm's value.
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