Suchergebnisse

The objective of this paper is to study the market valuation of R&D investments in the Taiwan stock market from July 1988 to June 2002. The motivation stems from Taiwan's recent economic transition from a labor-intensive, then to a capital-intensive, and currently to a technology-based economy. The results support not only the existence but also the persistence of R&D-associated mispricing. More importantly, it has become stronger as the electronics industry gradually dominates the economy. Firstly, R&D-intensive stocks tend to outperform stocks with little or no R&D. Secondly, the R&D-intensity effect cannot fully be attributed to firm size. Thirdly, the R&D-intensity effect is more pronounced for firms in the electronics industry after 1996. (Dev Econ/GIGA)