연구홍보포털

논문 초록 (Abstract)

This paper examines how R&D investment which proxies for technolog y innovation influences a firm’s value in accordance with a firm’s size and market structure on the basis of Schumpeterian hypothesis in l isted companies on the Korean stock markets over the period from 2001 to 2011. For more precise investigations, this paper divides total sa mples into several subgroups according to a firm’s size and market structure. Empirical results reveal that R&D investment has nonlinear relati onship with a firm’s value in accordance with a firm’s size, and ma rket structure. The result reveals R&D investment is nonlinearly related to market value of equity with the S and U-shape in accordance with the size of assets which proxies for a firm’ssize. The results also offers that inverted U-shape relationship exist between R &D and a firm’s value with according to thesize of sales. Moreo ver the empirical results also presents that R&D has inver ted U-shape nonlinear relationship with market value of equity in accord ing to the size of R&D intensity which substitute for market en try barrier. These results arepartially not the same with Schumpeter(1 942) and follow up researches which show inverted U-shape betwe en R&D investment and a firm’s size and market structure. Fro m these empirical results, this paper concludes that R&D plays a n importantrole in valuing a firm’s value; however the value relevan ce function is not linear but nonlinear shape in the Korean stock market s. The result of this paper indicates that new valuation model is nece ssary for reflecting nonlinear relationship between technology innovation and a firm’s value.