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An Empirical Study on the Relationship between R&D and Financial Performance
| Content Provider | Semantic Scholar |
|---|---|
| Author | Hsu, Feng-Jui Chen, Mu-Yen Chen, Yu-Cheng Wang, Wei-Chieh |
| Copyright Year | 2013 |
| Abstract | This study investigates the relationship between R&D investment, patent filings and financial success for firms. Firms which have high degrees of R&D investment and large numbers of patents are referred to as “high innovation energy corporations†. This study investigates the financial performance of such firms among a sample of Taiwanese high-tech companies from 2000 to 2011. Findings indicate that the lag between R&D expense and benefit, and the lead periods for patents (i.e., the duration of the application process) significantly affect stock returns. Moreover, these delays and a firm’s R&D expense rate also impact net sales. In other words, firms with a high level of innovative energy have better stock returns and net sales, but such firms do not have an advantage in terms of operating income. Empirical results indicate that higher R&D expenses increase operating costs which, in turn, decreases operating income despite increased net sales. |
| Starting Page | 1 |
| Ending Page | 9 |
| Page Count | 9 |
| File Format | PDF HTM / HTML |
| Volume Number | 3 |
| Alternate Webpage(s) | http://www.scienpress.com/Upload/JAFB/Vol%203_5_9.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
