The real effects of financial markets on scientific disclosure: Evidence from a quasi-natural experiment

Dr. Markus Simeth, Department of Strategy and Innovation, Copenhagen Business School

While innovation disclosure is essential for cumulative knowledge production and economic growth, evidence on firm incentives to disclose innovation outcomes is lacking. We examine the role of financial markets in firms' decisions to disseminate scientific research results. We employ a quasi-natural experiment that exploits plausibly exogenous variation in analyst coverage, resulting in higher information asymmetries. We find that firms respond by a quick and enduring increase in scientific publications. We also show that disclosure decisions are shaped by financial constraints and managerial incentives. We discuss important implications, such as potential crowding out effects between transparency initiatives and socially desirable innovation disclosure.

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About the speaker

Markus Simeth is assistant professor in the Department of Strategy and Innovation at Copenhagen Business School. His research interests focus on corporate science, R&D disclosure and knowledge diffusion, intellectual property rights, and employee mobility. His research has been published in leading outlets such as Management Science and Research Policy. Markus received his PhD from the Ecole Polytechnique Fédérale de Lausanne.

Venue: via Zoom (please contact us at for the Zoom link)

Date: 04 February 2021

Time: 12:00 - 13:00  CEST