An examination of long-term abnormal stock returns and operating performance following R&D increases

• 成果类型: Article
• 署名作者: Eberhart, AC; Maxwell, WF; Siddique, AR
• 署名单位: Georgetown University; University of Arizona
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2004.00644.x
• 发表日期: 2004
• 页码: 623-650
• 关键词: DEVELOPMENT EXPENDITURES; DELISTING BIAS; underreaction; valuation; INVESTMENT; tests

摘要

We examine a sample of 8,313 cases, between 1951 and 2001, where firms unexpectedly increase their research and development (R&D) expenditures by a significant amount. We find consistent evidence of a misreaction, as manifested in the significantly positive abnormal stock returns that our sample firms' shareholders experience following these increases. We also find consistent evidence that our sample firms experience significantly positive long-term abnormal operating performance following their R&D increases. Our findings suggest that R&D increases are beneficial investments, and that the market is slow to recognize the extent of this benefit (consistent with investor underreaction).