Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 5667-5675 |
| Number of pages | 9 |
| Journal | Applied Economics |
| Volume | 48 |
| Issue number | 58 |
| DOIs | |
| Publication status | Published - 2016 |
Keywords
- Firm value
- leverage
- R&D
- South Korea
Cite this
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How does leverage affect R&D intensity and how does R&D intensity impact on firm value in South Korea? / Min, Byung; Smyth, Russell.
In: Applied Economics, Vol. 48, No. 58, 2016, p. 5667-5675.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - How does leverage affect R&D intensity and how does R&D intensity impact on firm value in South Korea?
AU - Min, Byung
AU - Smyth, Russell
PY - 2016
Y1 - 2016
N2 - We examine how leverage affects corporate research and development (R&D) intensity, as well as examine the impact of R&D on firm value in South Korea, a country in which corporate-funded R&D intensity is one of the highest in the world. Among our main results, we find that growth opportunities have a positive effect on R&D intensity, while leverage has a negative effect on R&D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&D intensity turns from positive to negative. Using instrumental variables, we find that R&D generates an increase in firm value.
AB - We examine how leverage affects corporate research and development (R&D) intensity, as well as examine the impact of R&D on firm value in South Korea, a country in which corporate-funded R&D intensity is one of the highest in the world. Among our main results, we find that growth opportunities have a positive effect on R&D intensity, while leverage has a negative effect on R&D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&D intensity turns from positive to negative. Using instrumental variables, we find that R&D generates an increase in firm value.
KW - Firm value
KW - leverage
KW - R&D
KW - South Korea
UR - http://www.scopus.com/inward/record.url?scp=84969750837&partnerID=8YFLogxK
U2 - 10.1080/00036846.2016.1181836
DO - 10.1080/00036846.2016.1181836
M3 - Article
VL - 48
SP - 5667
EP - 5675
JO - Applied Economics
JF - Applied Economics
SN - 0003-6846
IS - 58
ER -