Cross -sectional variation in the market valuation of R&D spending in the prepackaged computer software industry.
Item
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Title
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Cross -sectional variation in the market valuation of R&D spending in the prepackaged computer software industry.
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Identifier
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AAI3024774
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identifier
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3024774
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Creator
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Chiang, Chiichao Catherine.
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Contributor
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Adviser: Sudipta Basu
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Date
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2001
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Accounting
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Abstract
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This dissertation examines the cross-sectional variability in the market valuation of R&D expenditures in the prepackaged software industry. Prior research has often assumed that R&D spending by different firms is valued homogeneously by the stock market. This dissertation argues and empirically demonstrates that this assumption is invalid. Built on the economic literature on technological innovation, hypotheses are derived regarding the determinants of the cross-sectional heterogeneity in the market valuation of R&D. Empirical tests of the hypotheses use an extensive database containing information at a product level of the software firms between 1994 and 1997, along with accounting and stock price data in the same period.;The test results, consistent with my hypotheses, show that R&D spending is more valuable for firms with larger market shares, more frequent introductions of product innovations and upgrades, higher percentage of technical employees, and those that have diversified into different product categories. The results also indicate that market valuation of R&D spending is a function of product life cycle.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
