Título
How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?
Autor(es)
Palabras clave
Research and development
Andmarket share
Firm growth
Financial system
Clasificación UNESCO
5312.10 Investigación y desarrollo
5311 Organización y Dirección de Empresas
Fecha de publicación
2010
Editor
Wiley Online Library
Citación
Pindado, Julio., Queiroz, Valdoceu de., de la Torre, Chabela. (2010). How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?. Financial Management 39(2), PP. 757-782. doi.org/10.1111/j.1755-053X.2010.01091.x
Resumen
[EN] This paper focuses on how a firm’s characteristics affect the market valuation of its research anddevelopment (R&D) spending. We derive a valuation model based on the capital market arbitragecondition. Using the generalized method of moments and data from the Eurozone countries toestimate this model yields interesting results. Several firm characteristics (size, firm growth, andmarket share) positively affect the relationship between firm value and R&D spending, whileothers (free cash flow, dependence on external finance, labor intensity, and capital intensity) exerta negative effect. Therefore, we conclude that the effectiveness of R&D spending depends on firmcharacteristics.
URI
ISSN
0046-3892
DOI
10.1111/j.1755-053X.2010.01091.x
Versión del editor
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