earticle

영어

We explore whether R&D and marketing expenditures during economic crisis could generate a comparative advantage that allow firms to earn abnormal profits. Using OLS regression analysis the results suggest no stock market returns to R&D and marketing expenditures except for one year period. The study also showed that marketing expenditures had negative impact on ROS. R&D expenditure had positive impact on stock market return only in 1998, which means although R&D expenditure could not generate a comparative advantage it functioned as a signal that the company has a good cash flow.