University of Twente Student Theses


Value of innovation in the financial market

Bruins, R. (2023) Value of innovation in the financial market.

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Abstract:This paper aims to provide an overview of the changes that the value of innovation has undergone in the last thirty years through a literature review. By creating an overview it was found that there is a consensus in the literature that the value of innovation is measured in the changes that it brings to the stock value of a company. Many inventions were made for the financial market brought more prosperity, there have however also been innovations that caused problems in the system. Negative innovations played a large role in the dot-com crash and the financial crisis. Before these two events there was more freedom for financial innovations to be developed. After these two events the value of innovations was still linked to stock returns, however the effects on culture and society started to play a larger role as well, and as a result, there was a growing call for more regulations. The implication of these developments in the field of innovations are that companies can no longer solely focus on stock returns and that the financial market as a whole should look towards changes in the system to create the proper checks and balances.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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