Browse > Article
http://dx.doi.org/10.5762/KAIS.2019.20.6.379

Industry Analyses on the Research & Development Expenditures for Korean Chaebol Firms  

Kim, Hanjoon (Division of Business Administration, Hoseo University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.20, no.6, 2019 , pp. 379-389 More about this Journal
Abstract
The study empirically investigates financial factors that may influence on corporate R&D intensity during the post-era of the global financial turmoil (from 2010 to 2015) to mitigate possible spillover effect associated with the crisis. Concerning the empirical research settings of the study, chaebol firms listed in the KOSPI stock market are used as sample data with adopting various econometric estimation methods to enhance validity of the results. In the first hypothesis test, it is found that there exist inter-industry financial differences in terms of the ratio of R&D expenditure across all the sample years, but the statistical differences may arise from only a few domestic industries beloning to the high-growth sector. Moreover, it is also interesting to identify that, for the high-tech sector, 3 explanatory variables such as R&D intensity in a prior year, firm size and change in cash holdings are proved to be financial factors to discriminate between chaebol firms and their counterparts of non-chaebol firms, whereas a proportion of tangible assets over total assets as well as the former two variables are shown to be significant factors on the R&D intensity for the low-tech sector.
Keywords
ANCOVA; Industry Effect; Korean Chaebol; Limited Dependent Variable; Research & Development;
Citations & Related Records
Times Cited By KSCI : 4  (Citation Analysis)
연도 인용수 순위
1 H. Kim, "Empirical Analyses on the Financial Profile of Korean Chaebols in Corporate Research & Development Intensity," Journal of the Korea Academia-Industrial Cooperation Society, vol. 20, no. 4, pp.232-241, 2019. DOI: https://doi.org/10.5762/KAIS.2019.20.4.232   DOI
2 Ministry of Science and ICT (2015), Report on the 2016 R&D Activities [Internet]. Available From: http://www.msip.go.kr/SYNAP (accessed Nov. 8, 2018)
3 The Maeil Kyoungje, [Internet]. Available at http://news.mk.co.kr/newsRead.php?year=2018&no=774123 (accessed Dec. 19, 2018)
4 S. Chan, K. Martin, J. Kensinger, "Corporate Research and Development Expenditures and Share Value," Journal of Financial Economics, vol. 26, pp. 255-276, 1990. DOI: https://doi.org/10.1016/0304-405X(90)90005-K   DOI
5 S. Perry, R. Grinaker, "Earnings Expectations and Discretionary Research and Development Spending," Accounting Horizons, vol. 8, no. 4, pp.43-51, 1994.
6 B. Lev, T. Sougiannis, "The Capitalization, Amortization, and Value-relevance of R&D," Journal of Accounting and Economics, vol. 21, pp.107-138, 1996. DOI: https://doi.org/10.1016/0165-4101(95)00410-6   DOI
7 P. Allison, "Logistic Regression Using SAS: Theory and Application (2nd ed.)," SAS Institute, NC, USA, pp.91-96, 2012.
8 C. Shi, "On the Trade-off between the Future Benefits and Riskness of R&D: a Bondholders' Perspective," Journal of Accounting and Economics, vol. 35, pp. 227-254, 2003. DOI: https://doi.org/10.1016/S0165-4101(03)00020-X   DOI
9 A. Everhart, W. Maxwell, A. Siddique, "An Examination of Long-term Abnormal Stock Returns and Operating Performance Following R&D Increases," Journal of Finance, vol. 59, no. 2, pp.623-650, 2004. DOI: https://doi.org/10.1111/j.1540-6261.2004.00644.x   DOI
10 H. Kim, "Evidence on the Optimal Level of Research & Development (R&D) Expenses for KOSPI-listed Firms in the Domestic Capital Market," Journal of International Trade & Commerce, vol. 14, no. 1, pp.147-165, 2018 DOI: http://dx.doi.org/10.16980/jitc.14.1.201802.147
11 H. Kim, "Further Analyses on the Contemporary Changes of Profitability for the Firms Belonging to the Chaebol in the Republic of Korea," Journal of Contents Association, vol. 14, no. 6, pp.367-384, 2014. DOI: http://dx.doi.org/10.5392/JKCA.2014.14.06.367   DOI
12 H. Kim, "Further Examinations on the Financial Aspects of R&D Expenditure For Firms Listed on the KOSPI Stock Market," Journal of the Korea Academia-Industrial Cooperation Society, vol. 19, no. 4, pp. 446-453, 2018. DOI: https://doi.org/10.5762/KAIS.2018.19.4.446   DOI
13 H. Kim, "Conditional Quantile Regression Analyses on the Research & Development Expenses for KOSPI-listed Firms in the Post-era of the Global Financial Turmoil," Journal of Contents Association, vol. 18, no. 4, pp.444-453, 2018. DOI: http://doi.org/10.5392/JKCA.2018.18.04.444