Corporate R&amp;D Spending During a Recession

Morbey, Graham K.; Dugal, Sanjiv S.

doi:10.1080/08956308.1992.11670834

Cited by 15 publications

(14 citation statements)

References 19 publications

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“…Lastly, the income tax coefficients are negative (positive) in the U.S. (Japan). In relation to nonfinancial determinants, studies have examined the impact of tax policies, the presence of a high technology (high tech) industry, market concentration, and market shares as determinants of R&D (e.g., [29]).…”

Section: Randd-related Literaturementioning

confidence: 99%

The Effect of R&D and the Control–Ownership Wedge on Firm Value: Evidence from Korean Chaebol Firms

Kang¹,

Kim²,

Cho³

2019

Sustainability

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Cases have been reported in which research and development (R&D) investment, the core activity for a firm’s sustainable growth, deteriorate rather than increase firm value. This study illuminates the cause of such cases in terms of the control–ownership wedge. How expensed and capitalized R&D affect firm value are examined separately for cases in which the wedge is high and low. In an analysis of Korean chaebol firms, when the wedge is high, significant negative relationships appear between expensed R&D and firm value, while no significant relationship appears between capitalized R&D and firm value. When the wedge is low, expensed R&D does not show any significant relationship with firm value, while capitalized R&D shows significant positive relationships with firm value. This confirms, first, that in cases of high wedge, suboptimal R&D decisions are made, in which the manager can discretionally determine investment targets or projects. Second, this indicates that even in cases of low wedge, the positive relationship between R&D and firm value does not appear in expensed R&D. This study suggests that investors and regulatory authorities should pay close attention to the initial stage of R&D in firms with high control–ownership wedges for sustainable economic growth.

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Section: Randd-related Literaturementioning

confidence: 99%

The Effect of R&D and the Control–Ownership Wedge on Firm Value: Evidence from Korean Chaebol Firms

Kang¹,

Kim²,

Cho³

2019

Sustainability

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“…If the large ICT producers in the countries negatively impacted lower their investments in innovation, it will have an impact on global ICT production. Specific effects will in part depend on the level of diversification of firms, and on their interconnectedness with their innovation ecosystems [ [19], [41]].…”

Section: Present and Future Global Ict Goods Exportingmentioning

confidence: 99%

“…[ [11]] with current data on IT investment, e.g., [[10], [15], [41], [43], [70], [71], [72], [74]], to generate a set of potential trajectories for firm-level IT investment across different countries between 2017 and 2099. We will also examine the difference between flows of ICT goods and ICT services in these contexts.…”

Section: Future Workmentioning

confidence: 99%

Information Systems in a Future of Decreased and Redistributed Global Growth

Tomlinson

Aubert

2017

Proceedings of the 2017 Workshop on Computing Within Limits

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Information systems cycles of innovation rely on global economic growth. However, a 2015 study in Nature predicted that climate change will dramatically slow and redistribute growth in the coming decades. This paper explores how decreased and redistributed growth may impact future information systems and digital innovation. While a long-term global slowdown is not certain, different countries will likely experience significant changes in their growth trajectories, and resulting civilizational transformations. We seek to establish quantitative and theoretical foundations for how a future characterized by climate change would impact information systems around the globe.

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“…The study learned the marked and positive effects on profits between new product and the expenses on R&D by Sougiannis (1994). Morbey and Dugal (1992) studied the less the corporation spent, the higher opportunities the revenue reduced during the course of economic recession. Megna and Klock (1993) and Hall (1993) took high-tech semi-conductor industry as the research object and learned the dedications to R&D resources possessed the positive influence on the rate of return on investment case.…”

Section: Products and Randd Technologymentioning

confidence: 99%

How to Evaluate the Performance of the Taiwan Biotech and Biopharmaceutical Corporations?

Tong¹

2015

IBR

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Modern biotechnology and pharmaceutical industry, the most developmental mainstream, has been generally acknowledged in the 21 st century. The approach of this study surmounted the traditional DEA and SFA, combining with modified Delphi approach, ISM, FANP and performance evaluation table to build evaluation mode of operating performance precisely and completely in Taiwan biotech and pharmaceutical corporations. Considering 4 criteria and 18 sub-criteria complied to evaluate the operating performance in the enterprise. The analyzed result appeared, the significance of criteria is "Product and technology R&D", "Financial performance", "Production and quality management" and "Organization characteristics and operation management" in sequence. The top 5 key sub-criteria influence the evaluation of operating performance in Taiwan biotech and pharmaceutical corporations are "Profitability", "Efficiency of production and cost", "Innovative products and R&D strategies", "Quality management and cost control" and "Operation strategy and business mode". The last 5 key sub-criteria are "Human resources management", "Project management", "Innovation of process technology", "Competence of financial operation" and "Market share". Finally, the top 10 of conglomerate revenue in listed companies taken as the sample of empirical research on this study. According to the experts" evaluation, the total point of weighted average is 58.9020 of whole sample in complete period in all enterprises, which fell at the grade of "Slightly good" as a whole. The related results accord with the real situation in the industry. The result of this study is able to be a significant basis as the policies drawn up by government, operating performance evaluated by the enterprise and investment target measured by the investors.

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Corporate R&D Spending During a Recession

Cited by 15 publications

References 19 publications

The Effect of R&D and the Control–Ownership Wedge on Firm Value: Evidence from Korean Chaebol Firms

The Effect of R&D and the Control–Ownership Wedge on Firm Value: Evidence from Korean Chaebol Firms

Information Systems in a Future of Decreased and Redistributed Global Growth

How to Evaluate the Performance of the Taiwan Biotech and Biopharmaceutical Corporations?

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