160th Seminar

主讲人:Ke Na 地点:Room 205, Jiageng Bld 2
讲座时间:2017-04-21 10:00 - 11:30 发布时间:2017-04-27 10:50

Topic:The Real Effect of Accounting Constraints: Evidence from Intellectual  Property Value


Presenter:Ke Na, assistant professor, The University of Hong Kong      

                

Time:April 21, 2017(Friday) 1000 - 11:30


Venue:Room 205, Jiageng Bld 2


Abstract:This paper examines the role of accounting constraints in the  creation of intellectual property. We define  accounting constraints as the constraints on managerial discretion over  financial reporting and find that firms with low accounting constraints produce  patent portfolios of higher economic value. To reduce the concern of endogeneity  in accounting constraints, we use the collapse of Arthur Anderson and the  passage of Sarbanes-Oxley Act (SOX) as exogenous increases in accounting  constraints and find consistent results. We also find that the negative impact  of accounting constraints on patent value is more pronounced for high-growth  firms, firms with a single-class ownership structure, and firms in  high-competition industries, consistent with low accounting constraints  promoting innovation by mitigating capital market and CEO labor market pressures  and facilitating the communication with external investors. In addition, we find  evidence consistent with accounting constraints affecting patent value by  shaping employees’ perceptions regarding the value of their implicit claims on  the firm. Collectively, our paper highlights the role of accounting discretion  in promoting intellectual property creation.