Does innovation matter to conference calls?

Chen Lung Chin, Picheng Lee, Ping Wen Wang, Gary Kleinman

Research output: Contribution to journalArticle

9 Scopus citations

Abstract

The main purpose of this study is to investigate whether the likelihood, frequency, and information content of conference calls are positively associated with innovation. The study is based on 534 conference calls conducted in 340 firm-years from 1997 to 2001 in Taiwan. Our findings indicate that more innovative firms are more likely to conduct conference calls and conduct them more frequently than less innovative firms. Consistent with prior research, high-growth firms and larger firms are more likely to hold conference calls, and hold them more frequently, than other firms. Low price-earnings firms are, nonetheless, more likely and frequent to host conference calls when their stock price has been undervalued. We also find supporting evidence that cumulative abnormal returns surrounding the event dates of conference calls are positively associated with the level of and change in innovation investments. In addition, our empirical results of market reaction driven by conference calls are still robust after controlling the effect of selection bias, market expectation, and timing of conducting conference calls. Finally, we also find that firms that are more innovative are more likely to discuss innovation activities during conference calls.

Original languageEnglish
Pages (from-to)699-715
Number of pages17
JournalIEEE Transactions on Engineering Management
Volume54
Issue number4
DOIs
StatePublished - 1 Nov 2007

Keywords

  • Business communication
  • Conference calls
  • Innovation
  • Innovation management
  • Intellectual property
  • Patent value
  • Patents
  • Research and development
  • Research and development management
  • Teleconferencing

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