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http://dx.doi.org/10.15813/kmr.2019.20.4.007

Market orientation and investment decision of firms  

Pyo, Gyungmin (건양대학교 글로벌경영대학 세무학과)
Publication Information
Knowledge Management Research / v.20, no.4, 2019 , pp. 119-129 More about this Journal
Abstract
This paper is aim to test how market orientation is related to the investment decision making. After controlling for firm-specific factors, this study finds a significantly positive relationship between market orientation and R&D expenditures, especially firms with high ratio of intangible assets and low ratio of abnormal inventory assets. Under conditions of low quality of earnings, the negative relation between market orientation and R&D expenditures is enhanced in electronic related industries. This indicates that the relation between market orientation and R&D expenditures may exhibit more reasonable patterns for investment decision of firms in technology driven business environment.
Keywords
Market orientation; Investment decision making; R&D expenditures;
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