Please use this identifier to cite or link to this item: https://doi.org/10.1111/j.1467-629x.2004.00116.x
Title: R&D investment and systematic risk
Authors: Ho, Y.K. 
Xu, Z.
Yap, C.M. 
Keywords: Financial leverage
Monte Carlo simulations
Operating leverage
Operating risk
R&D intensity
Issue Date: 2004
Source: Ho, Y.K.,Xu, Z.,Yap, C.M. (2004). R&D investment and systematic risk. Accounting and Finance 44 (3) : 393-418. ScholarBank@NUS Repository. https://doi.org/10.1111/j.1467-629x.2004.00116.x
Abstract: The present study investigates the relationship between a firm's R&D intensity and the risk of its common stock, by analysing a sample of firms which are more profitable, larger in market capitalization and more R&D intensive than the universe of US-listed firms. The results from the portfolio analysis, Monte Carlos simulations and correlation analysis of our sample show that: (i) R&D intensity is positively related to systematic risk in the stock market; (ii) the greater systematic risk is largely attributable to the greater intrinsic business risk and the greater operating risk of R&D-intensive firms; (iii) R&D-intensive firms carry marginally less financial leverage but they do not differ from other firms in terms of operating leverage; and (iv) our results are particularly strong in the manufacturing sector. For the non-manufacturing sector, the results are not robust for different study periods. © AFAANZ, 2004.
Source Title: Accounting and Finance
URI: http://scholarbank.nus.edu.sg/handle/10635/44532
ISSN: 08105391
DOI: 10.1111/j.1467-629x.2004.00116.x
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

24
checked on Dec 13, 2017

Page view(s)

132
checked on Dec 8, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.