Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Bachelor's Thesis |
| Scope | Discipline-based scholarship |
| Title | The Effect of Technological Investments on Firm Value: An Examination of the Global Electronics Industry |
| Organization Unit | |
| Authors |
|
| Supervisors |
|
| Language |
|
| Institution | University of Zurich |
| Faculty | Faculty of Economics, Business Administration and Information Technology |
| Number of Pages | 64 |
| Date | 2014 |
| Abstract Text | Executive Summary In recent years, there has been a growing interest of the financial community in the measurement of a firm’s technological knowledge. In this context, a market-based approach is applied in this Bachelor’s thesis, which estimates the marginal market value of an additional Dollar of investment in technological knowledge, using a set of heterogeneous firms as data points. The objective of this Bachelor’s Thesis is to analyze the effects of Research and Development (R&D) investment on the Tobin’s q of 770 firms from the global electronics industry using a database for the time period between 1993 and 2013. The analysis is conducted on an electronics industry sub-segment level, including besides North American and European also Asian firms. Compared to previous research a more complete and detailed picture on the market valuation of R&D is provided. Major findings were that the valuation of R&D in the global electronic industry is higher for Asian countries than for the U.S. These findings are persistent, even after accounting for firm-specific effects by applying a fixed effect estimator model. Furthermore, the valuation of R&D varies significantly across electronics industry sub-segments and over time. Hereby the highest values for R&D were found in the sub-segments with the lowest R&D intensity. Only an average R&D market valuation could be observed for high tech industries. In order to correctly quantify the analyzed effects of R&D investment on market value and compare them with the effects of ordinary investments in tangible assets of a firm requires a more complex and extensive model with a more accurate estimate of the technological knowledge. With more detailed data on a firm’s R&D activity a much richer analysis would be possible. Nevertheless, the Electronics industry with its short product life cycles, frequent disruptive innovations and emphasis on more recent R&D expenditures offers an attractive environment for future research on this topic. |
| Export |
BibTeX
|