Technology Sectoral Disruptions

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

 

Gordon

Paper Title: Technology Sectoral Disruptions
 
Speaker:  Gordon Phillips, Tuck School of Business at Dartmouth  
 
Time and Date: 12-1 pm, Wednesday 21 February 2024 (AEDT)
 
Location: CB08.05.002, Level 5, Building 8, University of Technology Sydney, Australia (Map of campus)

Abstract: We construct a novel measure of sectoral disruptions using a dynamic text-based spatial model of patents based on the extent to which innovation is suddenly highly correlated across multiple industries. We identify multiple sectoral disruptions occurring over a 70-year period of time. Abnormal stock returns, insider trading, and analyst forecast analysis indicate that sectoral disruptions are unexpected and create positive and long-lasting value gains. Impacted small firms (but not large firms) initially sharply increase equity issuance, reduce payouts, and increase both R&D and CAPX. In the second year after the sectoral disruptions, small firms acquire more and have growing sales, but also increase secrecy as they face increased VC-funded entry. Subsequently, acquisitions and VC activity continue to increase as corporate profits finally begin to increase with sales. These results provide a comprehensive first look at how sectoral disruptions affect firms and the industries in which they operate.

You can also keep up-to-date on information about our seminar series by following our LinkedIn page or checking out our seminar webpage.
If you would like to be removed from our seminar mailing list, please click here.


Co-ordinator: Kenny Phua

Enquiries: Chloe Qu

 

Back to Finance seminars
Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.