Browse > Article
http://dx.doi.org/10.5762/KAIS.2021.22.2.248

Further Empirical Analysis on Corporate R&D Intensity for KOSDAQ Listed SMEs in the Era of the Post Global Economic Crisis  

Kim, Hanjoon (Division of Business Administration, Hoseo University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.22, no.2, 2021 , pp. 248-258 More about this Journal
Abstract
The study analyzed the financial determinants of corporate R&D intensity that require more attention from academics and practitioners in the Korean capital market. Domestic small and medium enterprises (SMEs) may face with developing substitutes by making more R&D investments in scale and scope, given the unprecedented economic conditions such as the limitation of importing core components and materials from other nation(s). KOSDAQ-listed SMEs were selected as sample data, whose R&D expenditures may be less than those of large firms during the post-global financial turmoil period (2010~2018). Static panel data model was applied, along with Tobit and stepwise regression models, for examining the validity of results. Logit, probit, and complementary log-log regressions were also employed for a relative analysis. R&D expenditures in the prior year, the interaction effect between the previous R&D intensity and high-tech sector, firm size, and growth rate were significant to determine R&D intensity. Moreover, a majority of explanatory variables were found to change between the years 2011 and 2018, while time-lagged effects between the R&D intensity and growth rate exist. Results of the study are expected to be used for future research to detect optimal levels of R&D expenditures for the value maximization of SMEs.
Keywords
Financial Characteristics; Industry Influence; Korean Capital Market; Research & Development; Time-lagged Effect;
Citations & Related Records
연도 인용수 순위
  • Reference
1 R. Ramanathan. Introductory Econometrics with Applications (2nd ed.). Harcourt Brace & Company, 1992, pp.520-522.
2 R. Bowen, L. Daley, H. Charles, "Evidence on the Existence and Determinants on Inter-industry Differences in Leverage", Financial Management, Vol.11, No.4, pp.10-20, 1982.   DOI
3 O. Varela and R. Limmack, "Financial Structure and Industry Classification in the United Kingdom Empirical Research Findings", Journal of Financial Management and Analysis, Vol.11, No.1, pp.1-9, 1998.
4 H. Kim, "Financial Analysis by Conditional Quantile Regression on Corporate Research & Development Intensity for KOSDAQ-listed Firms in the Korean Capital Market,", Journal of the Korea Academia-Industrial Cooperation Society, Vol.21, No.5, pp. 179-190, 2020. DOI: https://doi.org/10.5762/KAIS.2020.21.5.179   DOI
5 Ministry of Science and ICT (2017). Report on the 2016 R&D Activities [Internet]. Available From: https://www.msit.go.kr/web/msipContents/contentsView.do?cateId=_policycom2&artId=1368919 (accessed July 20, 2020)
6 B. Lev and 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 Ministry of Science and ICT (2019). Report on the Plan of Technological Development of NONO and Core Components in 2020 [Internet]. Available From: https://www.msit.go.kr/web/msipContents/contentsView.do?cateId=_policycom2&artId=2429173 (accessed July 31, 2020)
8 H. Kim, "Empirical Analyses on Financial Attributes of Research and Development Expenditure for KOSDAQ-listed SMEs", Journal of SME Policy, Vol.5, No.1, pp.43-88, Spring 2020.
9 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
10 S. Perry and R. Grinaker, "Earnings Expectations and Discretionary Research and Development Spending", Accounting Horizons, Vol.8, No.4, pp. 43-51. 1994.
11 L. Chan, J. Lakonishok, T. Sougiannis, "The Stock Market Valuation of Research and Development Expenditures", Journal of Finance, Vol.56, No.6, pp. 2431-2456, 2001. DOI: https://doi.org/10.1111/0022-1082.00411   DOI
12 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
13 A. Everhart, W. Maxwell and A. Siddique, "A Reexamination of the Tradeoff between the Future Benefit and Riskiness of R&D Increases", Journal of Accounting Research, Vol.46, No.1, pp.27-52, 2008. DOI: https://doi.org/10.1111/j.1475-679X.2007.00264.x   DOI
14 V. Palenzuela and A. Bobillo, "Financial Structures of Spanish Firms: Multinational vs. Domestic", Multinational Business Review, Vol.2, No.2, pp. 64-79, 1994.
15 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: https://dx.doi.org/10.16980/jitc.14.1.201802.147   DOI
16 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
17 D. Czarnitzki and S. Thorwarth, "Productivity Effects of Basic Research in Low-Tech and High-Tech Industries", Research Policy, Vol.4, No.9, pp.1555-1564, 2012.