An empirical analysis of strategic competition and firm values the case of R&amp;D competition

Sundaram, Anant K.; John, Teresa A.; John, Kose

doi:10.1016/0304-405x(95)00853-7

Cited by 184 publications

(178 citation statements)

References 13 publications

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“…pointed out that the company's R & D spending forecast can predict the company's market value has a positive impact [14]; Chauvin and Hirschey (1993) [15], Chan (1994) [16], Sundaram (1994) [17] [18].…”

Section: R and D Expenditurementioning

confidence: 99%

A Review of the Relationship between Technological Innovation and Enterprise Value

Tian¹,

Zhang²

2017

Proceedings of the 2016 International Forum on Mechanical, Control and Automation (IFMCA 2016)

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Abstract. In order to carry out further research on the relationship between technological innovation and enterprise value, this paper sorts out the main theoretical and empirical literature on the relationship between technological innovation and enterprise value.Mainly introduces the role of technological innovation, research the main theories on the relationship between technological innovation and enterprise value, an empirical study on the relationship between technological innovation and enterprise value, and makes a brief review of the relationship between innovation and enterprise, in order to grasp the technology of enterprise value better, enhance the value of the enterprise,and form their own core competitiveness, access the sustainable competitive advantage.

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Section: R and D Expenditurementioning

confidence: 99%

A Review of the Relationship between Technological Innovation and Enterprise Value

Tian¹,

Zhang²

2017

Proceedings of the 2016 International Forum on Mechanical, Control and Automation (IFMCA 2016)

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“…There is evidence that increased R&D investment is viewed favorably by investors (Sundaram, John, & John, 1996). Despite this benefit, management may have incentives to underinvest in R&D. Management might underinvest because of their concentrated wealth in the firm leads them to be risk averse (Stein, 1988) or because they wish to manage earnings (Stein, 1989) or because they wish to protect earnings-based compensation (Bange & De Bondt, 1998).…”

Section: Literature Reviewmentioning

confidence: 99%

Do Institutional Investors Influence R&D Investment Policy in Firms with High Information Asymmetry?

Scott¹

2014

IBR

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This paper seeks to determine if institutional investors influence corporate research and development (R&D) investment policies by encouraging R&D investment in firms with high information asymmetry. The effect of changes in institutional investor levels to subsequent changes in R&D investment levels are examined using firm and year fixed effect regressions and difference-GMM regressions. Increased institutional ownership leads to increased R&D investment and this relationship is stronger in firms with higher information asymmetry. Institutional investors encourage higher R&D investment primarily in firms with high information asymmetry indicating they have an advantage in discerning the value of R&D investments in such firms. Institutions are an important and increasing force in U.S. stock ownership. The results in this paper indicate that institutional investors have an advantage in discerning the value of R&D investments in firms with high information asymmetry. The presence of institutional investors encourages the management of such firms to make long-term investments in R&D.

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“…Así, para clasificar a las empresas de acuerdo con su entorno competitivo es necesario contar con un indicador indirecto del grado de interacción competitiva entre ellas. De esta manera se adoptó la medida de competencia estratégica (csm) sugerida por Sundaram et al (1996) para tal fin. La csm propuesta por Sundaram et al (1996) pretende medir hasta qué punto son mutuamente afectadas las estrategias de mercado de una empresa y la de sus competidores.…”

Section: B) Metodologíasunclassified

“…De esta manera se adoptó la medida de competencia estratégica (csm) sugerida por Sundaram et al (1996) para tal fin. La csm propuesta por Sundaram et al (1996) pretende medir hasta qué punto son mutuamente afectadas las estrategias de mercado de una empresa y la de sus competidores. Este indicador se define como el coeficiente de correlación entre el cociente del cambio en los ingresos de una empresa y el cambio de sus ventas, y el cambio de las ventas de sus competidores, en donde las variaciones en las ventas y los ingresos de las empresas intentan reflejar cambios en las estrategias de mercado de las empresas.…”

Section: B) Metodologíasunclassified

“…Puesto que la csm es un coeficiente de correlación, ésta tendrá un rango de variación definido entre -1 y 1. De esta manera, si el valor de la csm es menor (Sundaram et al, 1996;Lyandres, 2006, y Jong et al, 2007. En el caso de sustitutos estratégicos, que correspondería a un entorno de tipo Cournot, ante cambios en la estrategia de mercado de sus rivales, la empresa reaccionará dando cabida a dichos cambios, con lo que su respuesta será "más amable", es decir, se esperaría que los cambios en sus estrategias de mercado fueran menos agresivos; con ello, la csm debería de presentar valores negativos (cuadro 2).…”

Section: B) Metodologíasunclassified

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Endeudamiento y competencia en el mercado: evidencia de las empresas en México

Valadez

2009

ETYP

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Palabras clave: competencia a la Cournot, competencia a la Bertrand, fuentes de financiamiento, deuda, estrategias competitivas, apalancamiento. Clasificación jel: G32, L10. AbstRActMotivated by the importance of analyzing decisions of firms in different markets where they interact, and considering different perspectives to examine the causes or effects, or both, this paper argues that corporate financial decisions are influenced by competition they face in real markets. The main objective of this work is to provide evidence to help cover empirical studies lack about this interaction. Results found suggest differential effects of competitive environment on firms financial structure. Moreover, results partially corroborate the theory on the main determinants of corporate financial structure, underscoring preference of companies for increased use of domestic sources of resources.

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An empirical analysis of strategic competition and firm values the case of R&D competition

Cited by 184 publications

References 13 publications

A Review of the Relationship between Technological Innovation and Enterprise Value

A Review of the Relationship between Technological Innovation and Enterprise Value

Do Institutional Investors Influence R&D Investment Policy in Firms with High Information Asymmetry?

Endeudamiento y competencia en el mercado: evidencia de las empresas en México

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