innovation future earnings and market efficiency feng gu school of management boston university 595 commonwealth avenue ma 02215 617 353 4985 bu edu draft date december 2004 i thank the helpful comments suggestions from an anonymous reviewer all errors are my own abstract this study examines whether patent citation impact a leading indicator technology firms capabilities is associated with association appropriately reflected in stock prices analysts forecasts rich companies results indicate that change positively particularly industries relatively short time lags between technological advances profit realization eg computer electronics medical equipment strength relation also significantly increases for up to five years participants including investors however do not fully incorporate into implication enhanced bias abnormal returns keywords value relevance nonfinancial jel classification m41 g14 o3 1 introduction number
