GAINING COMPARATIVE ADVANTAGE THROUGH DISCRETIONARY EXPENDITURES - THE RETURNS TO RESEARCH-AND-DEVELOPMENT AND ADVERTISING

• 成果类型: Article
• 署名作者: ERICKSON, G; JACOBSON, R
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.38.9.1264
• 发表日期: 1992
• 页码: 1264-1279
• 关键词: research-and-development; Advertising; Competitive advantage; STOCK MARKET RETURN; ACCOUNTING RETURN; DISCRETIONARY EXPENDITURES

摘要

We explore the extent to which R&D and advertising expenditures generate a comparative advantage that allows firms to earn supranormal profits. After controlling for unobserved firm-specific factors and the feedback between discretionary expenditures and profitability, our results suggest substantially lower accounting and stock market returns to R&D and advertising than indicated in previous research. Isolating mechanisms, which prevent imitation, do not appear sufficient for either R&D or advertising expenditures to generate, on the average, a long-run comparative advantage.