ÔØ ÅÒÙ×Ö ÔØ Limits-to-Arbitrage, Investment Frictions, and Innovation Anomalies Konan Chan, Yueh-Hsiang Lin, Yanzhi Wang PII: S0927-538X(17)30023-9 DOI: doi:10.1016/j.pacfin.2017.01.001 Reference: PACFIN 908 To appear in: Pacific-Basin Finance Journal Received date: 10 August 2016 Revised date: 14 December 2016 Accepted date: 16 January 2017 Please cite this article as: Chan, Konan, Lin, Yueh-Hsiang, Wang, Yanzhi, Limits-to- Arbitrage, Investment Frictions, and Innovation Anomalies, Pacific-Basin Finance Journal (2017), doi:10.1016/j.pacfin.2017.01.001 This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. ACCEPTED MANUSCRIPT Limits-to-Arbitrage, Investment Frictions, and Innovation Anomalies Konan Chan Department of Finance College of Commerce National Chengchi University Taipei 11605, Taiwan Yueh-Hsiang Lin Department of Finance College of Business National Taipei University of Business Taipei 10051, Taiwan and Yanzhi Wang Department of Finance College of Management National Taiwan University ACCEPTEDTaipei 10617, MANUSCRIPT Taiwan _____________________ Address correspondence to Yueh-Hsiang Lin, Department of Finance, College of Business, National Taipei University of Business, No. 321, Sec. 1, Jinan Rd., Taipei, Taiwan. Tel: +886-2-23226469; fax: +886-2-23226378; e-mail: [email protected]. We acknowledge useful comments from Hung-Kun Chen, Sheng-Syan Chen, Jarrad Harford, Woan-lih Liang, Alexender Ljungqvist, Geert Bekaert, Chuan Yang Hwang, Chia-Wei Huang, Ji-Chai Lin, Sheridan Titman, K.C. John Wei and seminar participants at Feng Chia University, National Chengchi University, National Chung Hsin University, and Yuan Ze University for helpful comments and suggestions. Wang acknowledges financial support from National Science Council (NSC 101-2628-H-002 -010 -MY2). .