Size and value effects in high-tech industries: The role of R&amp;D investment

Yu, Lin; Liu, Xiaoquan; Fung, Hung‐Gay; Leung, W.K.

doi:10.1016/j.najef.2018.10.001

Cited by 12 publications

(25 citation statements)

References 47 publications

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“…Other recent studies contend that volatility related to R&D investment may increase risk, causing investors to demand higher excess returns (Kim & Park, 2020;Li, 2011;Lin & Wang, 2016). Yu, Liu, Fung, and Leung (2020) determined that R&D expenditure, as a form of corporate innovation, is one potential risk factor for stock returns. R&D expenditure is one of the significant components of corporate strategies that enhance a company's long-term profitability (Balsmeier, Fleming, & Manso, 2017;Rubera & Kirca, 2012;Sunder, Sunder, & Zhang, 2017).…”

Section: Introductionmentioning

confidence: 99%

Research & Development Premium in the Indian Equity Market: An Empirical Study

Sharma

Srikanth

2021

5002

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This article aims to investigate the research and development (R&D) premium and explore the three most prominent asset pricing models: capital asset pricing and the three-and five-factor models (Fama & French, 1993; 2015). The results show that India's annualized average R&D premium is significantly higher than the existing value, market, profitability, size and investment premiums, implying that the R&D premium is a more significant concern for Indian investors, particularly for high R&D firms. It was also observed that by applying the GRS test and the Fama and MacBeth (1973) two-pass procedure, the R&D risk factor augmented the CAPM, FF3F and FF5F models outperforming the existing CAPM, FF3F and FF5F models, respectively. We can also report that R&D is, unquestionably, a priced ingredient and a critical factor in developing pricing models for developing markets such as India. The paper's conclusions add to the current literature in R&D and asset pricing and assist investment professionals in developing better investment and trading strategies.

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Section: Introductionmentioning

confidence: 99%

Research & Development Premium in the Indian Equity Market: An Empirical Study

Sharma

Srikanth

2021

5002

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“…Isso porque os ativos intangíveis podem se tornar uma fonte importante de diferenciação e vantagem competitiva sustentável nos mercados. Ainda conforme Lev (2001), ativos intangíveis são resultado das atividades de inovação, primariamente fundamentadas no financiamento de projetos de P&D. Gong e Wang (2016) destacam que as despesas com P&D constituem um elemento contábil com elevado grau de incerteza em relação à geração de benefícios econômicos futuros, corroborando Alam et al (2018), March (1991) e Yu et al (2018).…”

Section: Regulação Contábil Sobre O Disclosure De Despesas Com Pandd Nounclassified

“…Sendo isso válido, o disclosure de despesas com P&D adiciona outra importante dimensão do risco na avaliação de títulos acionários (Yu et al, 2018), podendo essa informação ser relevante para o mercado acionário. Igualmente, a existência de enforcement regulatório que imponha à firma financiar atividades assumidamente arriscadas, como os projetos de P&D, pode ser relevante para os investidores na projeção de fluxos futuros de caixa.…”

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Disclosure de despesas com P&D e enforcement regulatório no setor elétrico: value relevance no mercado de capitais brasileiro

Santos

Vasconcelos

Espíndola

2021

RCC, Rev. Contab. Control.

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A regulação pode funcionar como instrumento de incentivo à inovação nas firmas, mas não se sabe como essa coerção reflete nos preços dos títulos acionários. Tem-se como objetivo avaliar o efeito do enforcement regulatório do setor elétrico sobre a value-relevance do disclosure de despesas com P&D no mercado brasileiro de capitais. Foram analisadas 1.294 observações de 440 firmas listadas na B3 entre 2011 e 2015. A aplicação de regressão mostra que o enforcement regulatório é capaz de afetar negativamente a avaliação do disclosure de P&D, além de tornar o patrimônio líquido das empresas do setor elétrico mais informativo. Verificou-se que os agregados contábeis patrimônio líquido e lucro contábil se mostram mais relevantes entre as empresas sob regulação da ANEEL. As evidências sugerem que, no Brasil, o enforcement regulatório do setor elétrico se mostra como variável de interesse para os investidores.

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“…They suggested that the government simplify relevant laws and create a sustainable regulatory environment for high-tech firms. In addition, due to the characteristics of high-tech firms, R&D intensity and scale effect are closely related to stock returns, which have profound impacts on expansion and sustainable development (Yu et al, 2018).…”

Section: High-tech Firms and Sustainability Performance Assessmentmentioning

confidence: 99%

“…With the advent of the knowledge economy and the big data era, the sustainable development of high-tech firms has become a hot research topic (Silva, 2008;Xu and Lin, 2018). High-tech firms are economic entities that increase production capacity, create economic benefits and win market competition through innovative technologies, research and development of new products and the use of advanced equipment (Bojnec and Fertő, 2014;Yu et al, 2018). As key players in the upgrading of industrial structure, high-tech firms are better than resource-based firms at using knowledge and technology to improve product and service quality and thereby increase economic returns (Lin et al, 2012;Kuo et al, 2014;Xie et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Assessing sustainability performance of high-tech firms through a hybrid approach

Cui

Zhai²,

Dai

et al. 2019

IMDS

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Purpose In light of the lack of subjective criteria and scientific rationality in current sustainability performance assessment, the purpose of this paper is conducted to improve the sustainability performance assessment of high-tech firms by developing a hybrid approach that integrates quantitative and qualitative research methods. Design/methodology/approach This study proposed a hybrid approach that integrates word frequency analysis, cluster analysis, grey theory and the decision-making and trial evaluation laboratory (DEMATEL) method. Specifically, this study identifies useful criteria using quantitative word frequency analysis as well as qualitative literature research. Then, cluster analysis is used to divide these criteria into different categories. Subsequently, this study applies the grey theory associated with the DEMATEL method to assess the sustainability performance of high-tech firms. Findings The results reveal that the socio-environment is an important aspect underlying the corporate sustainability performance of high-tech firms. Therefore, high-tech firms should enhance their pollution emission control capabilities and increase investment in energy-conservation and emission-reduction technologies to drive sustainable development. In addition, increasing green product sales revenue and improving the guiding capability of green consumption are core issues that firms must address. Originality/value This study assesses the sustainability performance of high-tech firms by applying a hybrid method. This method can be used to construct a framework for scientific sustainability performance assessment and to provide a clear direction for the sustainable development of firms.

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Size and value effects in high-tech industries: The role of R&D investment

Cited by 12 publications

References 47 publications

Research & Development Premium in the Indian Equity Market: An Empirical Study

Research & Development Premium in the Indian Equity Market: An Empirical Study

Disclosure de despesas com P&D e enforcement regulatório no setor elétrico: value relevance no mercado de capitais brasileiro

Assessing sustainability performance of high-tech firms through a hybrid approach

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