search query: @author Sahlström, P. / total: 3
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| Author: | Kallunki, J-P. Sahlström, P. |
| Title: | Stock market valuation of R&D expenditures in R&D-intensive economy: Evidence from Finland |
| Journal: | Liiketaloudellinen aikakauskirja
2003 : 2, p. 109-121 |
| Index terms: | Stock markets R&D Costs Finland Nordic countries |
| Language: | eng |
| Abstract: | This paper investigates the stock market response to firms research and development (or R&D) expenditures in Finland, where a substantial increase in the economy-wide investments in R&D activities occurred during the 1990s. Consequently, the use of Finnish data provides an interesting environment to test the hypothesis that the stock market valuates R&D expenditures as an asset rather than a cost. The results reveal a significantly positive market response to R&D expenditures even after controlling for the valuation impact of negative earnings, industry differences and annual variation in returns. The results also indicate that the positive market response to the R&D expenditures becomes stronger as the economy-wide investments in R&D activities increase. |
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