| Author: | Chen, I Ming |
| Title: | Can R&D spillover effect explain the positive association between R&D investments and future abnormal returns ? |
| Advisors: | Jiang, Li (LMS) |
| Degree: | D.B.A. |
| Year: | 2019 |
| Subject: | Hong Kong Polytechnic University -- Dissertations Technological innovations -- Economic aspects Research, Industrial -- Economic aspects |
| Department: | Faculty of Business |
| Pages: | iv, 96 pages : color illustrations |
| Language: | English |
| Abstract: | This study examines whether R&D spillover effect can provide an alternative explanation on the positive association between R&D investments and future abnormal returns. I find that R&D investments of peer firms positively affect a firm's stock returns, and such R&D spillover effect is inversely related to geographical proximity and is positively related to the firm's own absorptive capability. In particular, using geographic distance as a key determinant of R&D spillover potential, I find no significant effect of such incoming R&D spillover potential on stock returns on its own. However, I find an incremental positive effect of the interaction between incoming R&D spillover potential and a firm's R&D investments as a proxy for absorptive capability. My evidence suggests that a firm's R&D investments enhance its absorptive capability in benefiting from peer firms' R&D investments. My study contributes to the literature on R&D premium by providing a new perspective on the importance of peer firms' R&D investments. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 991022289506803411.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.63 MB | Adobe PDF | View/Open |
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