R&D Expenditures And Investors Perception For An Input On Innovation Creation And Firm Growth: Empirical Evidence From Athens Stock Exchange

Abstract

The question that the present study attempts to examine, concerns whether investors value the potential of Greek enterprises to produce innovation, in a way (Acs & Audretsch, 1988) and therefore, the effort for future development and firm growth. The approach employed, follows the same rationale as Green et al, (1996) and Stark and Thomas (1998)

Development expenditures as source of revenue and market valuation: evidence from the Iberian cluster

“…This research aims to add complimentary evidences to previous researches (Lopes and Ferraz, 2016;Lopes et al, 2016a;Tudor et al, 2014;Tahinakis and Samarinas, 2013;Tanfous, 2013;Akinwale et al, 2011;Lopes, 2011;Chan et al, 2003;Lev and Sougiannis, 1996) and to identify whether the intangible resource "Development Expenditures", recognized in the annual accounts, has, in the Iberian countries (Portugal and Spain), a significant and positive impact on regional firms' economic returns and market valuation.…”

“…Thus, R&D expenditures could lead entities (public and private) to growth, to increased returns, and subsequently into financial and strategic achievements. These expenditures, based on knowledge applications, are the basis of innovation, driving companies to potential economic benefits (Tahinakis and Samarinas, 2013). According to Chen et al (2011), most nations have gradually devoted more efforts to R&D and have tried to create a favorable innovation environment by enforcing intellectual property rights to promote innovations.…”

“…The need to identify and address the bottlenecks that restrict the growth of firms in innovative sectors. Although the impact of macroeconomic trends at the firm's level, organizations include in their innovation strategies important R&D efforts towards the achievement of systematic and sustainable profitability and performance standards (Tahinakis and Samarinas, 2013;Lopes, 2011;Freeman and Louçã, 2001;Lev and Sougiannis, 1996).…”

“…firm's reputation; stakeholders' satisfaction; strategic alliances; etc.) whose capitalization in the statement of financial position is not supported by financial and accounting rules, and complimentary information is not disclosed in the management reporting notes (Tahinakis and Samarinas, 2013;Akinwale et al, 2011;Chan et al, 2003;Lev and Sougiannis, 1996). However, market value can also be understood as a source of future returns, by inducing stakeholders into future shares acquisitions and other financial behaviors.…”

The influence of culture and transparency on global research and development intensity: An overview across Europe

“…Thus, R&D expenditures could lead entities (public and private) into growth, into increased returns, and into subsequently financial and strategic achievements. These knowledge based expenditures are the basis of innovation, driving companies to potential economic benefits (Fernández-Jardón et al, 2014;Tahinakis & Samarinas, 2013;VanderPal, 2015). According to Chen et al (2011), most nations have gradually devoted more efforts on R&D, and have tried to create a favorable innovation environment by enforcing intellectual property rights to promote innovations.…”