The determinants of investor valuation of R&D expenditure in the software industry

被引：6

作者：

Chiang C.C. ^{[1
]}

Mensah Y.M. ^{[2
]}

机构：

[1] Department of Accounting, School of Business, North Carolina Central University, Durham, NC 27707

[2] Department of Accounting, Rutgers Business School, Rutgers University, New Brunswick

来源：

Review of Quantitative Finance and Accounting | 2004年 / 22卷 / 4期

关键词：

Computer software industry; Intangible assets valuation; R&D;

D O I：

10.1023/B:REQU.0000032600.07130.fc

中图分类号：

学科分类号：

摘要：

This paper examines the cross-sectional variability in the market valuation of R&D expenditures in the pre-packaged computer software industry. Consistent with some prior research, this paper argues that R&D spending is valued heterogeneously by the stock market, and derives hypotheses regarding the determinants of the cross-sectional heterogeneity in the market valuation of R&D. The empirical tests use an extensive database containing product level information of software firms between 1994 and 1998, along with accounting and stock price data of the same period. The test results, consistent with our hypotheses, show that R&D spending is more valuable for firms with larger market shares, higher percentage of technical employees, and those that have diversified into different product categories. The results also indicate that market valuation of R&D spending is a function of product life cycle.

引用

页码：293 / 313

页数：20

共 33 条

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