연구홍보포털

논문 초록 (Abstract)

This paper investigates the nonlinear value relevance of R&D inves tment in companies listed companies on Korean stock markets from 2001 to 2011. For examining whether the role of R&D investment is li near or nonlinear function in valuing market value of equity, this s tudy uses ‘converted Ohlson(1995) model’ by inserting R&D inve stment variable in original Ohlson(1995)’s valuation. Moreover this p aper replicates empirical method of Morck et al.(1988), Choi et al.(20 09) and Shin et al.(2011)by adding square value of R&D investme nt in ‘converted Ohlson(1995) model.’ to test nonlinear function between R&D investment and market value of equity. This paper als o splits total sample data into several subgroups according to the be longingmarkets, firm size, and technology level to observe the value relevance changes of R&D investment. Empirical results showevidences on the role of R&D investm ent in valuing market value of equity. Contrary to the general assumpt ion about the linear function of R&D investment in valuing m arket value of equity, R&D investment has nonlinear(inverted U-sha pe) value relevance in every sample group(total sample, KOSPI firm grou p, KOSDAQ firm group, large firm group, small & medium firm grou p, high technology firm group, and low technology firm group) which i s split by a firm’s characteristics. This result suggests that not all R&D investment could promote market value of equity, and r ather excessive investment in R&D may decrease a firm’s value.