The New Product Portfolio Innovativeness-Stock Returns Relationship: The Role of Large Individual Investors' Culture Academic Article uri icon

abstract

  • The marketingfinance interface literature has investigated the direct link between innovativeness and stock returns. The authors extend this research by focusing on two open questions: How and under what conditions is innovativeness associated with stock returns? Answering these questions is important for managers who have to defend innovation investments to board members and time the introductions of new products. The authors investigate large individual investors and their national culture in the food and beverage industry. Combining multiple data sets, they first examine the relationship between innovativeness and large individual investors stock holding decisions (i.e., to sell, hold onto, or buy a firms stocks). The results indicate that national culture moderates this relationship. At the firm level, the authors show that large investors stock holding partially mediates the innovativenessstock returns relationship and that the culture of a firms large investors moderates this mediated relationship. Thus, they unveil a special segment of investors, large individual investors, who influence the extent to which firms benefit from innovativeness in the stock market in the food and beverage industry.

published proceedings

  • JOURNAL OF MARKETING

altmetric score

  • 13.08

author list (cited authors)

  • Cillo, P., Griffith, D. A., & Rubera, G.

citation count

  • 16

complete list of authors

  • Cillo, Paola||Griffith, David A||Rubera, Gaia

publication date

  • November 2018