The Effects of Research and Development Expense on Export Performance and Firm Value: Evidence from Firms listed in KOSDAQ

Abstract

The purpose of this study is to investigate the effects of research and development expenses on export performance and firm value. To verify these effects, descriptive analysis, correlation analysis, independent sample T-tests, and multivariate regression analysis were conducted on firms listed in KOSDAQ from 2011 to 2017. Study results are as follows. First, the results of the T-tests based on a median split of R&D expense presented that two groups are significantly different in terms of some variables and that firms with high levels of R&D expense have greater firm value than those with low levels of R&D expense. In addition, firms with the high level of R&D expense have greater export ratio than those with the low level of R&D expense. These results showed that R&D expense may positively influence firm value and export performance. Second, the results of the multivariate regression analysis displayed that R&D expenses of firms listed in the KOSDAQ positively influence their firm values. These results are the same the Panel A and the Panel B models. Third, the results of another multivariate regression analysis disclosed that R&D expenses of firms listed in the KOSDAQ positively influence their export performances. Using firm value and export ratio, this study attempted to examine the effects of R&D expense in firms listed in the KOSDAQ. This study can practically contribute to policy makers who support R&D for firms and academically help future researchers understand the effects of R&D expense on firm performance.