Journal of the Korean Society for Computer Game (한국컴퓨터게임학회논문지)

Korean Society for Computer Game (한국컴퓨터게임학회)
권호 표지

The Impact of R&D Investment on Firm Value of Game Companies

게임업체의 연구개발 투자가 기업가치에 미치는 영향

  • Jeon, Ho Jin (Department of Finance & Insurance, Seoul Cyber University)
  • Received : 2013.11.12
  • Published : 2013.12.31
⟨ Previous Next ⟩

Abstract

This paper empirically studies R&D investment and firm value in game companies. Found the following results First, the empirical results show that negative relation between R&D investment absolute scale and firm value. On the other hand, an increase in R&D intensity has simultaneously positive relations with firm value. On an existing research, we can conjecture that game companies should increase its R&D intensity rather than R&D investment absolute. Couldn't find significant results when it comes to long term performance of R&D. In light of these, can be inferred that R&D investments affect more short term than long term firm value in game industry.

Keywords

References

  1. Balkin, B., G. Markman and L. R. Gomez- Mejia,"Is CEO pay High technology firms related to innovation", The Academy of Management Journal, Vol.43, No.6, pp. 1118-1129, 2000. https://doi.org/10.2307/1556340
  2. Ballester, M. and M. Garcia-Ayuso and J, Livnat., "The Economic Value of the R&D Intangible Asset", European Accounting Review, pp.605-633, 2003.
  3. Bublitz, B. and M. Ettredge., "The Information in Discretionary Outlays: Advertising, Research and Development" The Accounting Review, Vol. 64, No.1, pp.108-124, 1989.
  4. Chan, Ho., J. Martin., and J. Kensinger., "Corporate Research and Development Expenditures and Share Value", Journal of Financial Economics, Vol.26, No.2,pp.255-276, 1990. https://doi.org/10.1016/0304-405X(90)90005-K
  5. Chan, L., J. Lakonishok and T. Sougiannis, "The Stock Market Valuation of Research and Development Expenditure" Journal of Finance, Vol.56, No. 2, pp.2431-2456, 2001. https://doi.org/10.1111/0022-1082.00411
  6. Chauvin, K. W. and M. Hirschey, "Advertising, R&D Expenditures and The Market Value of The Firm", Financial Management, Vol. 22, No. 4, pp.128-140, 1993. https://doi.org/10.2307/3665583
  7. Coombs, J. E. and P. E. Bierly, "Measuring Technological Capability and Performance", R&D Management. Vol. 36, pp.421-438, 2006. https://doi.org/10.1111/j.1467-9310.2006.00444.x
  8. David, P., M. A. Hitt and J. Gimeno, "The influence of activism by institutional investors on R&D", Academy of Management Journal, Vol. 44, pp.44-157, 2001.
  9. Himmelberg, C., and B. Petersen, "R&D and Internal Finance: A Panel Study of Small Firms in High-Tech Industry", The Review of Economics and Statistics, Vol. 76, No. 1, pp.38-51, 1994. https://doi.org/10.2307/2109824
  10. Hyung-sup Yun, and Yong-man Kwon, "A Study on Korean Game History", Journal of Korean Society for Computer Game, Vol. 26 No.1, pp. 107-113, 1013.
  11. Hyung-Won Jung, Dong-Seok Kim, Baik-Soon Seong, "A Exploratory Research on Overseas Expansion Strategies of On-line game", Journal of Korean Society for Computer Game, Vol. 25, No.2,pp. 93-103, 2012.
  12. Jones, E. and Danbolt, J., "R&D Project Announcements and the Impact of Ownership Structure," Applied Economics Letters, Vol. 10, No. 14, pp. 933-936, 2003. https://doi.org/10.1080/1350485032000164017
  13. Johnson. J. A., "Consequential Approach to Accounting for R&D", Journal of Accounting Research, Vol. 5, No. 2, pp.164-172, 1967.
  14. Jung-kwon Kim, "Searching for popularity factor of mobile game: Interface Quantification", Journal of Korean Society for Computer Game, Vol. 25, No.4, pp. 89-95, 2012.
  15. Lev, B. and T. Sougiannis, "The Capitalization, Amortization, and Value-Relevance of R&D", Journal of Accounting and Economics, Vol. 21, No. 1, pp.107-138, 1996. https://doi.org/10.1016/0165-4101(95)00410-6
  16. Schumpeter, J., "The Creative Response in Economic History", The Journal of Economic History, Vol. 7, No. 2, pp.149-159, 1947. https://doi.org/10.1017/S0022050700054279
  17. Sougiannis, T., "The accounting based valuation of corporate R&D", The Accounting Review, Vol. 69, No. 1, pp.44-68, 1994.
  18. Tobin, J., "A General Equilibrium approach to Monetary Theory," Journal of Money, Credit and Banking, Vol. 1, pp.15-29, 1969. https://doi.org/10.2307/1991374