题目: The Market Valuation of R&D Decreases
演讲者：Konan Chan， Associate Professor, School of Economics and Finance, University of Hong Kong
时间: 2009年5月22日（星期五）3:00—4:30PM
地点: 嘉庚二号楼501
参加者: 对财务研究有兴趣的广大师生
主持人： 沈哲老师 
论文摘要：
While many studies document that R&D investments significantly contribute to firm value, there
is very little existing research which investigates whether the reduction in R&D expenditures
creates any negative impact on firms’ performance. This paper examines long-term performance
following significant R&D decrease. We find that firms with large decline in R&D generate a
significantly positive abnormal stock return in the long-run. This return drift cannot be explained
by previously documented determinants of cross-section returns, such as size, book-to-market
ratio, momentum, accruals, asset growth and net share issuance. We explore three economic
motives behind R&D decrease – R&D spillover, managerial myopia and overinvestment – to
account for the associated abnormal returns. We find no compelling evidence to support either the
spillover or myopia explanation. Our results are most consistent with the overinvestment
hypothesis that firms cut down R&D investments to mitigate the agency problem. Firms with low
growth opportunities generate higher future returns than their R&D decrease counterparts. Also,
firms decrease their cost of capital after R&D decrease and these firms with declining cost of
capital outperform. Our results suggest that the market underestimates the decline in cost of
capital following R&D reduction.
论文作者简介：
Konan Chan received his Ph.D. from the University of Illinois at Urbana-Champaign, after which he taught at the Case Western Reserve University and National Taiwan University. He joined the School of Economics and Finance/School of Business in August 2005. His research interests include Corporate finance, Repurchases, Equity offerings, M&A and Asset pricing.