Full metadata record
DC Field | Value | Language |
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dc.contributor.author | Lev, Baruch | - |
dc.contributor.author | Radhakrishnan, Suresh | - |
dc.contributor.author | Ciftci, Mustafa | - |
dc.date.accessioned | 2008-06-04T16:12:52Z | - |
dc.date.available | 2008-06-04T16:12:52Z | - |
dc.date.issued | 2006-03 | - |
dc.identifier.uri | http://hdl.handle.net/2451/27475 | - |
dc.description.abstract | We examine future excess returns, earnings variability and stock volatility of R&D Leaders and Followers. Drawing on the business strategy literature, which makes a clear distinction between R&D Leaders and Followers, we show that R&D Leaders do earn significant future excess returns, while R&D Followers just earn average returns. We further document that R&D Leaders generate higher future sales growth, and return-on-assets than Followers. We also tackle the perennial question of whether the excess returns subsequent to R&D are due to mispricing or risk, and show that only a small part of the returns can be attributed to risk compensation. Finally, it has been documented that R&D expenditures are strongly associated with future earnings volatility, suggesting that R&D is less reliable (verifiable) an asset than physical capital. We show that the association between R&D intensity and future earnings volatility of R&D Leaders is not lower than that of R&D Followers. Thus, penetrating the population of R&D firms to distinguish between R&D Leaders and Followers, we bridge the chasm between the major findings of the economics/finance strand and the accounting body of R&D research. | en |
dc.language.iso | en_US | en |
dc.relation.ispartofseries | Baruch Lev-15 | en |
dc.title | The Stock Market Valuation of R&D Leaders | en |
dc.type | Working Paper | en |
Appears in Collections: | Accounting Working Papers |
Files in This Item:
File | Description | Size | Format | |
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SSRN-id898693.pdf | 280.82 kB | Adobe PDF | View/Open |
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