Marginal Effect of R&D Expenditures on Value of Technology Companies
| Author: | Mgr. Lukáš Tuček, |
|---|---|
| Year: | 2020 - summer |
| Leaders: | prof. Ing. Evžen Kočenda M.A., Ph.D., DSc. |
| Consultants: | |
| Work type: | Economic Theory Masters |
| Language: | English |
| Pages: | 67 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/213917/ |
| Abstract: | Research and development is an inseparable part of technology industry as technology companies, unlike most, rely on R&D not only as means of efficiency improvement to existing production, but rather as means of production itself. This thesis presents an alternative approach to R&D intensity measure and applies it in an empirical analysis on technology leaders company data from 2013 through 2018 measuring R&D intensity impact on company market value. Additionally, this thesis explores the differences in impact of R&D on company value dependent on the company’s product cycle nature. The results of this thesis are mostly conforming to existing academic literature and show diminishing returns to R&D intensity. A surprising negative effect of a variable comparing given company’s R&D expenditures to ones of the segment leader of a given segment has been found. There has been found no lag difference between the groups of companies with open and closed cycle product development. |
