Innovation indicators and corporate credit ratings: evidence from German firms

Refereed Journal // 2004
Refereed Journal // 2004

Innovation indicators and corporate credit ratings: evidence from German firms

The literature on the relationship between firm value and knowledge capital is based on stock market valuation. We use a credit rating score as an alternative measure. Innovative firms achieve better ratings, whilst too many innovative activities reduce the rating.

Czarnitzki, Dirk and Kornelius Kraft (2004), Innovation indicators and corporate credit ratings: evidence from German firms, Economics Letters 82(3) , 377-384