How does leverage affect R&D intensity and how does R&D intensity impact on firm value in South Korea?
File version
Accepted Manuscript (AM)
Author(s)
Smyth, Russell
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Date
Size
File type(s)
Location
License
Abstract
We examine how leverage affects corporate research and development (R&D) intensity, as well as examine the impact of R&D on firm value in South Korea, a country in which corporate-funded R&D intensity is one of the highest in the world. Among our main results, we find that growth opportunities have a positive effect on R&D intensity, while leverage has a negative effect on R&D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&D intensity turns from positive to negative. Using instrumental variables, we find that R&D generates an increase in firm value.
Journal Title
Applied Economics
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
Publisher link
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
© 2016 Taylor & Francis (Routledge). This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 21 May 2016, available online: https://www.tandfonline.com/doi/10.1080/00036846.2016.1181836
Item Access Status
Note
This publication has been entered into Griffith Research Online as an Advanced Online Version.
Access the data
Related item(s)
Subject
Applied economics
Applied economics not elsewhere classified
Econometrics