Journal of Financial Economics Vol. 26 No. 2 1990
Corporate research and development expenditures and share value
Abstract
Share-price responses to 95 announcements of increased research and development (R & D) spending are significantly positive on average, even when the announcement occurs in the face of an earnings decline. High-technology firms that announce increases in R & D spending experience positive abnormal returns on average, whereas announcements by low-technology firms are associated with negative abnormal returns. Further, in our cross-sectional analyses we find that higher R & D intensity than the industry average leads to larger stock-price increases only for firms in high-technology industries.
- DOI
- 10.1016/0304-405x(90)90005-k
- Volume
- 26
- Issue
- 2
- Pages
- 255-276
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref