Work detail

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.

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