This study examines how research and development (R&D) spending, which is considered a non-profitable investment, is evaluated in the capital market and analyzes the impact this spending has on a firm’s value. For this purpose, data from Korean firms listed from January 1992 to December 2015 is used. The results of this study show that portfolios that invested heavily in R&D had consistently high results and that, consequently, spending on R&D is an effective explanatory factor for stock returns. It was also found that the impact R&D expenditures have on stock value is long-term, not short-term. These results show that R&D spending should not be considered a proxy cost of a manager’s discretionary spending, as is suggested by the existing literature, but rather a means of improving a firm’s value. Using data from Korea’s stock market, this study is meaningful in that it examines the relationship between R&D spending and the stock market from a variety of perspectives in an emerging market.
Keyword : Research and development, Excess return, Portfolio analysis, Agency problem, Emerging market
학회소식
[2017년 제 1차] The Stock Market Valuation of Research and Developm
작성자 : 관리자
조회수 : 873
게시일 :
2017-03-02
