Yuan He’s research while affiliated with Xiamen University and other places

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Publications (2)


Cumulative abnormal returns around new product announcement dates. Notes. This figure depicts sample average cumulative abnormal returns in the (-10, +10) window around New product announcement dates (day 0). New product announcements are assigned to the High group when INNOVDIS is above the sample median and to the Low group otherwise
New product announcements, innovation disclosure, and future firm performance
  • Article
  • Full-text available

February 2024

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79 Reads

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7 Citations

Review of Accounting Studies

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Yuan He

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Reuven Lehavy

This study examines the properties of innovation disclosures contained in new product announcements, a form of voluntary, nonfinancial disclosure. We analyze these properties using a novel, text-based measure of the extent of product innovation disclosed in new product announcements. We find that stock prices react more positively to announcements with more extensive innovation disclosure. In our main analyses, we first find that a higher level of innovation disclosure predicts a greater increase in future sales. We further find that this predictive ability falls when managers have stronger incentives to maximize their wealth and when the corporate governance structure and customers’ bargaining power weaken. Our research enhances the understanding of the properties of managerial voluntary, nonfinancial disclosures and contributes a text-based measure of innovation that captures managerial assessment of the extent of product innovation. This new measure is more generalizable and incrementally informative for firm value and future performance than conventional innovation measures that depend on the existence of patents or research and development expenses.

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Citations (2)


... Innovation information, 1 particularly textual information, serves as a mechanism for mitigating this asymmetry and is crucial for investors to understand a firm's innovation endeavors (Huang et al., 2021;Liu et al., 2020;Liu et al., 2023aLiu et al., , 2023bVieira & Radonjič, 2020). The importance of textual information has grown as firms' innovation activities become more complex and diverse, providing additional insights to investors beyond what digital financial information can convey (Bellstam et al., 2021;Chu et al., 2024;Hanley & Hoberg, 2010;Li, 2010). Specifically, the tone of this information, especially its positivity, can signal a firm's attitude towards its business operations and innovation potential (Loughran & McDonald, 2011;Tran et al., 2023). ...

Reference:

Is Innovation-Related Textual Information True? Insight from Equity Pledging Behavior in Chinese A-Share Listed Firms
New product announcements, innovation disclosure, and future firm performance

Review of Accounting Studies

... Methodologically, we extend the approach of Bellstam et al. (2021) and provide a methodological framework based on natural language processing (NLP), using unsupervised Latent Dirichlet Allocation (LDA) topic modelling in combination with sentiment analysis. In this regard, we follow the uprising trend in the literature to derive innovation output indicators from unstructured text data (Mukherjee et al. 2017, Lenz and Winker 2020, Bellstam et al. 2021, Chu et al. 2021, Kinne and Lenz 2021. This enables us to overcome the scalability and subjectivism shortcomings of traditional survey or counting based innovation indicators to provide granular innovation data with broad coverage (Flor and Oltra 2004, Riffe et al. 2019, Sbalchiero and Eder 2020. ...

New Product Announcements, Innovation Disclosure, and Future Firm Performance
  • Citing Article
  • January 2020

SSRN Electronic Journal