International Journal of Business and Management The Persistence and Market Reaction of R&D Investment
Abstract
The study investigates the value relevance of R&D investment and the reactions of investors in Korean stock
markets over the period of 2001-2008. This paper examines whether R&D investment is associated with equity
value and whether the information of R&D investment is truly reflected on the Korean stock markets. Consistent
with the hypothesis and prior researches, the empirical results of this paper documents that R&D investment is
significantly related to the market value of equity and Korean investors quickly recognize the implication of
R&D investment information.
markets over the period of 2001-2008. This paper examines whether R&D investment is associated with equity
value and whether the information of R&D investment is truly reflected on the Korean stock markets. Consistent
with the hypothesis and prior researches, the empirical results of this paper documents that R&D investment is
significantly related to the market value of equity and Korean investors quickly recognize the implication of
R&D investment information.
This work is licensed under a Creative Commons Attribution 3.0 License.
International Journal of Business and Management ISSN 1833-3850 (Print) ISSN 1833-8119 (Online)
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