Voluntary Disclosure of Externally Sourced Technological Innovation and Managerial Opportunism: Evidence from the Korean Stock Market

Abstract

This study aims to investigate the information effect of voluntary disclosure of externally sourced technological innovation by type of technological innovation, namely, in-bound technology transfer, out-bound technology transfer, and technological alliance. Long-term performance is lower for firms with lower quality accounting information and this effect is most evident in the disclosure of an in-bound technology transfer. Further, low disclosure quality firms undergo a greater decline in long-term performance after a seasoned equity offering following the disclosure of an in-bound technology transfer than high disclosure quality firms. This relationship is more pronounced during a bear market than during a bull market.