Using 2,614 panel data of firms listed on the Korea Exchange over the period from 2001 to
2009, this paper examines effects of technology innovation activity on permanent shareholder wealth
proxied by a permanent component of market equity. To the end, we use the Beveridge-Nelson
decomposition and the conditional quantile and OLS regression method. Two kinds of regression
indicate empirical evidence that technology innovation activity has a significantly positive effect
on permanent shareholder wealth and that the effect is nonlinear across the conditional quantiles
of firm value, where the impact is greater in higher quantiles. The results are consistent with
those for the sub-samples divided into manufacturing and non-manufacturing industries. For
robustness, regression results by using patents, an output index for technology innovation activity
still remain valid for our principal findings. Our study provides financial managers who pursue
effective investment decisions with a valuable implication of importance of TIA.
주제어：Technology Innovation Activity, Shareholder Wealth, Beveridge-Nelson Decomposition, Quantile
Regression, Nonlinear Effect