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Firm size and the effect of R&D on Tobin's q
Author(s) -
Connolly Robert A.,
Hirschey Mark
Publication year - 2005
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2005.00384.x
Subject(s) - tobin's q , economics , valuation (finance) , value (mathematics) , monetary economics , econometrics , mathematics , statistics , accounting
Significant market value effects of research and development (R&D) are generally apparent, but aggregate evidence has the potential to obscure meaningful differences according to firm size. Consistent with findings reported by Chauvin and Hirschey (1993) for the late 1980s, valuation effects of R&D remain somewhat greater for larger as opposed to smaller firms.