There is a growing tendency that a company recently spends a lot of R&D investment and tries to acquire intellectual property as it expects greater future economic profits than the invested amount. However, there is controversy over the spending R&D investment and acquiring intellectual property of ...
There is a growing tendency that a company recently spends a lot of R&D investment and tries to acquire intellectual property as it expects greater future economic profits than the invested amount. However, there is controversy over the spending R&D investment and acquiring intellectual property of a firm, and it is no guarantee of the better future performances resulting from them. Moreover, it is hard to find a direct relationship between R&D investment and future profits or between intellectual properties and future performances.
The previous studies on the association between R&D expenditures and the performance of a corporation have reported inconsistent conclusions. Most studies have indicated the positive relationship between R&D and firm performance, but some researches have shown negative or non-significant relationship about the association of R&D expenditures and firm’s profit (Hall, 1993; Megna et al., 1993; Lev et al, 1998; Ely and Waymire, 1999; Gu and Lev, 2000; Yoon et al., 2011; Noh, 2013; Shin et al., 2010; Jong et al., 2001; Kim et al., 2007; Jong et al., 2003; Aboody et al., 1998; Park and Yang 2006; Lee et al., 2014).
Also, prior studies have shown the positive relationship between intellectual properties and the performance of a corporation (Hall, Jaffe and Trajtenberg, 2000; Park, 2006; Kim et al., 2008; Anh, 2010). However, there are few studies considering the interaction of R&D expenditures and intellectual properties, namely the moderate effect of intellectual properties.
Therefore, this study attempted to clarify the effects of the R&D investment and intellectual property on the business performances of companies, using the samples of the listed companies. In order to achieve the objectives of this study, this study examine the literature research related to the R&D investment and intellectual property and at the same time, an empirical study was conducted.
For the purpose of this empirical study, the 3,040 samples are chosen among listed companies in the period from 2004 to 2014, of which fiscal year end in December. To investigate empirically whether or not there exist any impact the relationship between the R&D expenditures and intellectual properties and the future performance of corporations, this study uses the analysis of regression through Excel program, SPSS WIN Version 23.0, STATA 13, SmartPLS 3.0.
The result of the empirical analysis of the association between R&D expenditures and the performance of a corporation and the relationship of the intellectual property and firm's performances are as follows:
First, the R&D investment has a significant negative effect on a rate of ROA or three-year average ROA, controlling effect-size as proxied by the log of it, the financial health as proxied by debt-to-equity ratio, and year effect as proxied by year dummies.
Second, the intellectual property has a significant positive influence on the future performances, controlling effect-size as proxied by the log of it, the financial health as proxied by debt to equity ratio, and year effect as proxied by year dummies.
Third, the interaction of R&D investment and the intellectual property has a significant negative effect on a rate of ROA or three-year average ROA, controlling effect-size as proxied by the log of it, the financial health as proxied by debt-to-equity ratio, and year effect as proxied by year dummies.
The implications reviewed through the results of this study are as follows:
First, it is important to spend R&D expenditure into consideration when evaluating the efficiency of R&D investment. Hence, the policy-makers of firms should consider the amount of the expenditure of R&D undertaken in the company, thinking of the long term performances as well as short term ones.
Second, this study suggests that the factor of patent shows the significant correlation with the corporate performances. Hence, this result implies that the intellectual properties have been positively more correlated with firm profits.
Third, using the intellectual properties as moderating factor treats, the result of this study reported that the interaction of R&D investment and the intellectual property has a significant negative effect on the future performances. This can be understood as a result relative to the effectiveness and necessity of the amount of R&D expenditure regardless of acquiring the intellectual property.
There is a growing tendency that a company recently spends a lot of R&D investment and tries to acquire intellectual property as it expects greater future economic profits than the invested amount. However, there is controversy over the spending R&D investment and acquiring intellectual property of a firm, and it is no guarantee of the better future performances resulting from them. Moreover, it is hard to find a direct relationship between R&D investment and future profits or between intellectual properties and future performances.
The previous studies on the association between R&D expenditures and the performance of a corporation have reported inconsistent conclusions. Most studies have indicated the positive relationship between R&D and firm performance, but some researches have shown negative or non-significant relationship about the association of R&D expenditures and firm’s profit (Hall, 1993; Megna et al., 1993; Lev et al, 1998; Ely and Waymire, 1999; Gu and Lev, 2000; Yoon et al., 2011; Noh, 2013; Shin et al., 2010; Jong et al., 2001; Kim et al., 2007; Jong et al., 2003; Aboody et al., 1998; Park and Yang 2006; Lee et al., 2014).
Also, prior studies have shown the positive relationship between intellectual properties and the performance of a corporation (Hall, Jaffe and Trajtenberg, 2000; Park, 2006; Kim et al., 2008; Anh, 2010). However, there are few studies considering the interaction of R&D expenditures and intellectual properties, namely the moderate effect of intellectual properties.
Therefore, this study attempted to clarify the effects of the R&D investment and intellectual property on the business performances of companies, using the samples of the listed companies. In order to achieve the objectives of this study, this study examine the literature research related to the R&D investment and intellectual property and at the same time, an empirical study was conducted.
For the purpose of this empirical study, the 3,040 samples are chosen among listed companies in the period from 2004 to 2014, of which fiscal year end in December. To investigate empirically whether or not there exist any impact the relationship between the R&D expenditures and intellectual properties and the future performance of corporations, this study uses the analysis of regression through Excel program, SPSS WIN Version 23.0, STATA 13, SmartPLS 3.0.
The result of the empirical analysis of the association between R&D expenditures and the performance of a corporation and the relationship of the intellectual property and firm's performances are as follows:
First, the R&D investment has a significant negative effect on a rate of ROA or three-year average ROA, controlling effect-size as proxied by the log of it, the financial health as proxied by debt-to-equity ratio, and year effect as proxied by year dummies.
Second, the intellectual property has a significant positive influence on the future performances, controlling effect-size as proxied by the log of it, the financial health as proxied by debt to equity ratio, and year effect as proxied by year dummies.
Third, the interaction of R&D investment and the intellectual property has a significant negative effect on a rate of ROA or three-year average ROA, controlling effect-size as proxied by the log of it, the financial health as proxied by debt-to-equity ratio, and year effect as proxied by year dummies.
The implications reviewed through the results of this study are as follows:
First, it is important to spend R&D expenditure into consideration when evaluating the efficiency of R&D investment. Hence, the policy-makers of firms should consider the amount of the expenditure of R&D undertaken in the company, thinking of the long term performances as well as short term ones.
Second, this study suggests that the factor of patent shows the significant correlation with the corporate performances. Hence, this result implies that the intellectual properties have been positively more correlated with firm profits.
Third, using the intellectual properties as moderating factor treats, the result of this study reported that the interaction of R&D investment and the intellectual property has a significant negative effect on the future performances. This can be understood as a result relative to the effectiveness and necessity of the amount of R&D expenditure regardless of acquiring the intellectual property.
주제어
#연구개발투자 지식재산취득 경영성과
※ AI-Helper는 부적절한 답변을 할 수 있습니다.