earticle

영어

This study is to empirically analyze if there are some relevance between corporate’s R&D expenditures and its market performance according to firm size and characteristics. 515 companies those are listed on Korea Exchange including KOSPI and KOSDAQ are selected for the sample survey over the period of 12 years from January 2001 to December 2012. Many of previous studies showed that there is a close relevance between R&D expenditures and corporate’s market performance, but they did not conduct them by combining the two of analyses of time-series and cross-section and time lag analysis. Thus panel data analysis and time lag analysis were used here while considering matters of time differences. The market performance is studied by dividing into three categories such as market capitalization, book value to market value ratio and price to net book value ratio. The summary of this study’s empirical results are as follows: First, corporate’s R&D expenditures have a significantly positive(+) relation statistically with all market performance at current (t) and previous (t-1) timing. This result indicates that R&D expenditures are consistently increasing corporate’s market performance. Second, growth rate has a significantly positive correlation statistically on all market performances over all periods. This result shows that the higher growth rate the corporate has, corporate invest the more investment on R&D expenditures. Third, debt ratio shows positive and negative influence on market performance, and the significant level is shown differently at market performance and the periods, respectively. Fourth, firm’s size is shown that it has a significantly positive correlation statistically on all market performances over all periods. This result shows that the bigger the corporate is, the corporate increases investment on R&D expenditures. And we can see that the effects are shown over several years. There were some restrictions in securing accuracy and objectivity in computation of expenditures due to no enough cases and lack of reliability of the data. Besides, this study has set the limits to a few of listed companies during a certain period which led to a sense of difference between sample companies. Therefore, it is necessary to study the relevance between R&D expenditures and corporate’s market performance more objectively by improving those matters.