EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR

Umut ÖNEŞ (Ankara Üniversitesi, Siyasal Bilgiler Fakültesi, Ankara, Türkiye)
Ankara Üniversitesi SBF Dergisi
8 2
Yıl: 2019 Cilt: 74 Sayı: 4 Sayfa Aralığı: 1401 - 1421 Metin Dili: İngilizce DOI: 10.33630/ausbf.607446 İndeks Tarihi: 16-09-2020

EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR

Öz:
Past research has shown positive association with accumulated R&D intensity with firm performance;however, the exact channel and magnitude of this influence seems to vary across sectors and depend oncharacteristics of the sample and the performance criteria chosen. Using observations from 163 firms operatingon a global scale, our study focuses on the empirical relationship between R&D expenditure and firmperformance in the global technology hardware and equipment sector (ICB Code 9570), in comparison to fixedcapital expenditure based on a cross-sectional regression model. We find no significant association betweenpast R&D expenditure from 2012 to 2016 and operating margin or net margin in 2017, while the impact of pastcapital expenditure is significant and positive. On the other hand, accumulated R&D appears to increase firm’sfuture Tobin’s Q or stock-price-to-book value; which reveals a strategic function of R&D expenditure inestablishing investor optimism about the future revenue stream of the firm.
Anahtar Kelime:

ARGE ve Sermaye Harcamalarının Firma Performansına Etkileri: Teknoloji Donanımı ve Ekipmanı Sektörü

Öz:
Geçmişteki araştırmalar, çoğunlukla firmanın birikmiş ARGE yoğunluğunun gelecekteki performansa olumlu katkısının olduğunu göstermiş olsa da; etkinin tam olarak hangi kanallardan gerçekleştiği ve boyutları sektörden sektöre farklılık göstermekte, seçilen örneklemin özelliklerine ve kullanılan performans kriterlerine göre değişmektedir. Çalışmada, teknoloji donanımı ve ekipmanı sektöründe (ICB Kod 9570) küresel düzeyde üretim yapan 163 firmaya ait gözlemler kullanılarak ARGE harcamaları ve firma performansı arasındaki ampirik ilişki bir kesit regresyon modeli aracılığıyla sabit sermaye harcamalarına göreli olarak incelenmiştir. 2017 yılına ait işletim kâr marjları ve net kâr marjları ile 2012-2016 arası ARGE harcamaları arasında istatistiksel olarak anlamlı bir bağlantı bulunamasa da, aynı döneme ait sabit sermaye harcamaları ile kâr marjları arasında anlamlı ve aynı yönde bir ilişki tespit edilmiştir. Öte yandan, geçmişteki ARGE yoğunluğunun bir yıl sonraya ait “Tobin’s Q” ya da hisse değeri-varlık değeri oranını istatistiksel olarak anlamlı bir şekilde arttırdığı gözlemlenmiştir. Bu bulgu, ARGE harcamalarının kısa vadede kârlılığa doğrudan bir etkisi olmasa da, firmanın gelecekteki beklenen gelir akışı konusundaki yatırımcı iyimserliğini arttırma yönünde bir stratejik rol oynadıklarına işaret etmektedir.
Anahtar Kelime:

Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık
  • Barth, N., Cappelen, Å., Skjerpen, T., Todsen, S., & Åbyholm, T. (2016). Expected service lives and depreciation profiles for capital assets: Evidence based on a survey of Norwegian firms. Journal of Economic and Social Measurement, 41(4), 329-369.
  • Belderbos, R., Carree, M., & Lokshin, B. (2004). Cooperative R&D and firm performance. Research Policy, 33(10), 1477-1492.
  • Bharadwaj, A. S., Bharadwaj, S. G., & Konsynski, B. R. (1999). Information technology effects on firm performance as measured by Tobin's q. Management Science, 45(7), 1008-1024.
  • BIS (2010) The 2010 R&D Scoreboard. http://www.innovation.gov.uk/rdscoreboard/?p=3 Accessed 21 December 2018.
  • Brooks, C. (2014). Introductory Econometrics for Finance. Cambridge Books. pp 136-138.
  • Connolly, Robert A., and Mark Hirschey. "Firm size and the effect of R&D on Tobin's q." R&D Management 35.2 (2005): 217-223.
  • Croux, C., Dhaene, G., & Hoorelbeke, D. (2003). Robust standard errors for robust estimators. Discussion Paper Series 03.16, Katholieke Universiteit Leuven.
  • Demirel, P., & Mazzucato, M. (2012). Innovation and firm growth: Is R&D worth it? Industry and Innovation, 19(1), 45-62.
  • Dugal, S. S., & Morbey, G. K. (1995). Revisiting corporate R&D spending during a recession. Research-Technology Management, 38(4), 23-27.
  • Eberhart, A. C., Maxwell, W. F., & Siddique, A. R. (2004). An examination of long‐term abnormal stock returns and operating performance following R&D increases. The Journal of Finance, 59(2), 623-650.
  • Erickson, G., & Jacobson, R. (1992). Gaining comparative advantage through discretionary expenditures: The returns to R&D and advertising. Management Science, 38(9), 1264- 1279.
  • EU IRI (2017). The 2017 EU Industrial R&D Investment Scoreboard, R&D ranking of the world top 2500 companies. http://iri.jrc.ec.europa.eu/sites/default/files/contentype/scoreboard/2019- 11/R%26D%20ranking%20of%20the%20world%20top%202500%20companies.xlsx Accessed November 28th, 2019.
  • Farrar, D. E., & Glauber, R. R. (1967). Multicollinearity in regression analysis: the problem revisited. The Review of Economic and Statistics, 92-107.
  • Galindo-Rueda, F., & Verger, F. (2016). OECD Taxonomy of Economic Activities Based on R&D Intensity (No. 2016/4). OECD Publishing.
  • Gentry, R. J., & Shen, W. (2013). The impacts of performance relative to analyst forecasts and analyst coverage on firm R&D intensity. Strategic Management Journal, 34(1), 121-130.
  • Grabowski, H., & Vernon, J. (1990). A new look at the returns and risks to pharmaceutical R&D. Management Science, 36(7), 804-821.
  • Griffith, R., Redding, S., & Reenen, J. V. (2004). Mapping the two faces of R&D: Productivity growth in a panel of OECD industries. Review of economics and statistics, 86(4), 883-895.
  • Griliches, Z. (1979). Issues in assessing the contribution of research and development to productivity growth. Bell Journal of economics, 10(1), 92-116.
  • Griliches, Z. (1980). R & D and the Productivity Slowdown. The American Economic Review, 70(2), 343-348.
  • Grilliches, Z., Hall, B., & Hausman, J. (1986). Patents and R&D: Is there a lag. International Economic Review, 27(2), 265-283.
  • Hall, B. (1986). The Relationship Between Firm Size and Firm Growth in the US Manufacturing Sector (No. 1965). National Bureau of Economic Research, Inc.
  • Hall, B. H. (2007). Measuring the returns to R&D: The depreciation problem (No. w13473). National Bureau of Economic Research.
  • Hall, H. B., & Mairesse, J. (2009). Measuring corporate R&D returns. Presentation to the Knowledge for Growth Expert Group, Directorate General for Research, European Commission, Brussels, January.
  • Ho, Y. K., Tjahjapranata, M., & Yap, C. M. (2006). Size, leverage, concentration, and R&D investment in generating growth opportunities. The Journal of Business, 79(2), 851-876.
  • Hsieh, P. H., Mishra, C. S., & Gobeli, D. H. (2003). The return on R&D versus capital expenditures in pharmaceutical and chemical industries. IEEE Transactions on Engineering Management, 50(2), 141-150.
  • Huber, P. J. (1973). Robust regression: asymptotics, conjectures and Monte Carlo. The Annals of Statistics, 1(5), 799-821.
  • IRIMA (2018). The 2017 EU Industrial R&D Investment Scoreboard. http://iri.jrc.ec.europa.eu/ scoreboard17.html Accessed March 3rd, 2018.
  • Jaffe, A. B. (1986). Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value. American Economic Review, 76(5), 984-1001.
  • Kafouros, M. I. (2008). Economic returns to industrial research. Journal of Business Research, 61(8), 868-876.
  • Kaldor, N. (1966). Marginal productivity and the macro-economic theories of distribution: Comment on Samuelson and Modigliani. The Review of Economic Studies, 33(4), 309-319.
  • Kotabe, M., Srinivasan, S. S., & Aulakh, P. S. (2002). Multinationality and firm performance: The moderating role of R&D and marketing capabilities. Journal of international business studies, 33(1), 79-97.
  • Kothari, S.P. and Loutskina, Elena and Nikolaev, Valeri V., Agency Theory of Overvalued Equity as an Explanation for the Accrual Anomaly (October 2006). Available at SSRN: https://ssrn.com/abstract=871750 or http://dx.doi.org/10.2139/ssrn.871750
  • Lee, C. L., & Wu, H. C. (2016). How do slack resources affect the relationship between R&D expenditures and firm performance? R&D Management, 46(S3), 958-978. Ho, Y. K., Li, W. C., & Hall, B. H. (2016). Depreciation of business R&D capital. Review of Income and Wealth.
  • Loch, C., Stein, L., & Terwiesch, C. (1996). Measuring development performance in the electronics industry. Journal of Product Innovation Management, 13(1), 3-20.
  • Matsumura, T., Matsushima, N., & Cato, S. (2013). Competitiveness and R&D competition revisited. Economic modelling, 31, 541-547.
  • McKean, Joseph W. (2004). Robust Analysis of Linear Models. Statistical Science. 19 (4): 562–570.
  • Montresor, S., & Vezzani, A. (2015). The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations. Research Policy, 44(2), 381-393.
  • Morbey, G. K., & Reithner, R. M. (1990). How R&D affects sales growth, productivity and profitability. Research-Technology Management, 33(3), 11-14.
  • Moris, F., Jankowski, J., Boroush, M., Crawford, M., & Lee, J. (2015). R&D Recognised as Investment in US GDP Statistics: GDP Increase Slightly Lowers R&D-to-GDP Ratio. National Science Foundation, Washington DC. www.nsf.gov/statistics/2015/nsf15315.
  • Nolan, M. P., Oppenheim, C., & Withers, K. A. (1980). Patenting, profitability and marketing characteristics of the pharmaceutical industry. World Patent Information, 2(4), 169-176.
  • Nomura, K., & Suga, Y. (2018, July). Measurement of depreciation rates using microdata from disposal survey of Japan. In The 35th IARIW General Conference, Copenhagen, Denmark.
  • O’brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & Quantity, 41(5), 673-690.
  • Ortega-Argilés, R., Potters, L., & Voigt, P. (2009). R&D-intensive SMEs in Europe: What do we know about them. European Commission-JRC, 52424.
  • Ortega-Argilés, R., Piva, M., & Vivarelli, M. (2015). The productivity impact of R&D investment: are high-tech sectors still ahead? Economics of Innovation and New Technology, 24(3), 204- 222.
  • Ramaswamy, V., Ueng, C. J., & Carl, L. (2008). Corporate governance characteristics of growth companies: An empirical study. Academy of Strategic Management Journal, 7, 21.
  • Saad, M., & Zantout, Z. (2014). Over-investment in corporate R&D, risk, and stock returns. Journal of Economics and Finance, 38(3), 438-460.
  • Schreyer, P., & Zinni, B. (2018). Productivity measurement, R&D assets and mark-ups in OECD countries (No. 2018/06). OECD Publishing.
  • Singh, L. (1994). Productivity, Competitiveness, and Export Growth in a Less Developed Economy: A Study of Indian Punjab (No. 714). Center Discussion Paper.
  • Shin, N., Kraemer, K. L., & Dedrick, J. (2009). R&D, value chain location and firm performance in the global electronics industry. Industry and Innovation, 16(3), 315-330.
  • Shin, N., Kraemer, K. L., & Dedrick, J. (2017). R&D and firm performance in the semiconductor industry. Industry and Innovation, 24(3), 280-297.
  • Teirlinck, P., & Spithoven, A. (2013). Formal R&D management and strategic decision making in small firms in knowledge‐intensive business services. R&D Management, 43(1), 37-51.
  • Tjahjapranata, M., & Yap, C. M. (2006). Size, leverage, concentration, and R&D investment in generating growth opportunities. The Journal of Business, 79(2), 851-876.
  • UNESCO (2015) Gross domestic expenditures on R&D (GERD) http://data.uis.unesco.org/? ReportId=1781. Accessed 10 January 2016.
  • Van de Ven, P. (2015). New standards for compiling national accounts: what’s the impact on GDP and other macro-economic indicators. Statistics Brief. Paris: OECD.
  • Warusawitharana, M. (2015). Research and development, profits, and firm value: A structural estimation. Quantitative Economics 6 (2), 531–565.
  • Wernerfelt, B., & Montgomery, C. A. (1988). Tobin's q and the importance of focus in firm performance. The American Economic Review, 246-250.
  • White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48(4), 817-838.
  • Wilcox, R. R., & Keselman, H. J. (2004). Robust regression methods: Achieving small standard errors when there is heteroscedasticity. Understanding Statistics, 3(4), 349-364.
  • Xu, X., & Birge, J. R. (2008). Operational decisions, capital structure, and managerial compensation: A news vendor perspective. The Engineering Economist, 53(3), 173-196.
  • Yohai, Victor J. "High breakdown-point and high efficiency robust estimates for regression." The Annals of Statistics 15.2 (1987): 642-656.
  • Zheng, W., Singh, K., & Mitchell, W. (2015). Buffering and enabling: The impact of interlocking political ties on firm survival and sales growth. Strategic Management Journal, 36(11), 1615-1636.
APA Öneş U (2019). EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. , 1401 - 1421. 10.33630/ausbf.607446
Chicago Öneş Umut EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. (2019): 1401 - 1421. 10.33630/ausbf.607446
MLA Öneş Umut EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. , 2019, ss.1401 - 1421. 10.33630/ausbf.607446
AMA Öneş U EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. . 2019; 1401 - 1421. 10.33630/ausbf.607446
Vancouver Öneş U EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. . 2019; 1401 - 1421. 10.33630/ausbf.607446
IEEE Öneş U "EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR." , ss.1401 - 1421, 2019. 10.33630/ausbf.607446
ISNAD Öneş, Umut. "EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR". (2019), 1401-1421. https://doi.org/10.33630/ausbf.607446
APA Öneş U (2019). EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. Ankara Üniversitesi SBF Dergisi, 74(4), 1401 - 1421. 10.33630/ausbf.607446
Chicago Öneş Umut EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. Ankara Üniversitesi SBF Dergisi 74, no.4 (2019): 1401 - 1421. 10.33630/ausbf.607446
MLA Öneş Umut EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. Ankara Üniversitesi SBF Dergisi, vol.74, no.4, 2019, ss.1401 - 1421. 10.33630/ausbf.607446
AMA Öneş U EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. Ankara Üniversitesi SBF Dergisi. 2019; 74(4): 1401 - 1421. 10.33630/ausbf.607446
Vancouver Öneş U EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR. Ankara Üniversitesi SBF Dergisi. 2019; 74(4): 1401 - 1421. 10.33630/ausbf.607446
IEEE Öneş U "EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR." Ankara Üniversitesi SBF Dergisi, 74, ss.1401 - 1421, 2019. 10.33630/ausbf.607446
ISNAD Öneş, Umut. "EFFECTS OF R&D AND CAPITAL EXPENDITURE ON FIRM PERFORMANCE: EVIDENCE FROM TECHNOLOGY HARDWARE AND EQUIPMENT SECTOR". Ankara Üniversitesi SBF Dergisi 74/4 (2019), 1401-1421. https://doi.org/10.33630/ausbf.607446
Sayfa Oluşturulma Tarihi
10-05-2024 13:35

İLETİŞİM

TÜBİTAK ULAKBİM TR Dizin

Yüzüncüyıl, İşçi Blokları Mahallesi

Muhsin Yazıcıoğlu Caddesi No:51/C

06530 Çankaya / ANKARA +90 (312) 298 92 00

trdizin@tubitak.gov.tr

TÜBİTAK ULAKBİM Ulusal Akademik Ağ ve Bilgi Merkezi Cahit Arf Bilgi Merkezi © Tüm Hakları Saklıdır. Gizlilik Politikası Kullanım Şartları