Abstract
The linkage between R&D spending and market value of firms has been continuously debated from time to time. Many studies have proved that there is a positive impact. Meanwhile, other studies have proved that it depends on which sectors in the economy, some sectors have a strongly positive effect but the others have a weak effect. This paper estimates the relationship between R&D expenditures and market price in the telecommunication sector. First, by using the COMPUSTAT annual industrials of North America in period 1950-2005, we find a strong evidence of the positive relationship. Second, we implement another test to investigate some particular characteristics of the telecommunication sector during the process of liberalization telecommunication markets as well as the emerging internet and developing Information Technology era. Overall, our result is consistent with some previous studies. Third, we expand the model and find that price per share is positively associated with other variables including total assets per share and earning per share.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
