earticle

영어

The purposes of this paper are to build theoretical and empirically testable model to identify the determinants of research and development expenditure, and to analyze this model empirically using the Korea Stock Exchange panel data, and to test the impact of IMF crisis on the model relationship. The dependent variables identified in this paper include the equity ratio of large shareholders, institutional investors and individual investors, and the control variables are excess-earning power, internal financing ability, firm size, financial risk, business risk, growth opportunity, and tax support. Empirical panel estimation test reveals that this model can explain about 6.7% of the variance in research and development expenditure to sales ratio. The reasons that this model has low explanatory power are that some variables were measured with errors, and that there were some omitted variables in tested model. The regression results on the model variables are generally in line with predictions. And it appears that the exogenous variable which explains IMF crisis has minor effect on the determinants of research and development expenditure.