To Know or Not to Know: Stock Market Implications of Firms with Superior Knowledge Management

摘要: In recent years firms have dramatically increased their expenditures on “knowledge management” (KM), where KM can be defined as the processes managers use to create new knowledge and leverage existing knowledge. Economic theory argues that is an important driver of firm value case study evidence suggests with superior practices outperform peers. We are unaware, however, any systematic benefits shareholders. fill this void by examining stock market reaction companies receiving “Most Admired Knowledge Enterprise” (MAKE) award, which recognizes excel at KM. find MAKE winners experience abnormal returns 1.25% during five days surrounding award announcements, magnitude correlated winners’ future operating performance. also report accounting performance relative peers subsequent receipt analysts make significant upward revisions earnings forecasts month following award. Taken together, our findings consistent creating shareholder wealth improving These economic a fundamental value, literature in variety business disciplines alleges provide competitive advantage.