Scale effects of R&D as reflected in earnings and returns

• 成果类型: Article
• 署名作者: Ciftci, Mustafa; Cready, William M.
• 署名单位: University of Texas System; University of Texas Dallas; State University of New York (SUNY) System; Binghamton University, SUNY
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.02.003
• 发表日期: 2011
• 关键词: innovative productivity; firm size; valuation; SCOPE; RISK; performance; experience; BOUNDARIES; riskiness

摘要

Using returns to scale as a conceptual foundation, we explore how R&D-related earnings performance and earnings variability depend upon firm size. We find that the positive association between the level of future earnings and R&D intensity increases with firm size, and that the positive association between the volatility of future earnings and R&D intensity decreases with firm size, consistent with R&D productivity increasing with scale. We also show that R&D scale is associated with lower market returns, consistent with the idea that R&D investment risk declines with scale. (C) 2011 Elsevier B.V. All rights reserved.