The Relationship between R&D Expernditure and Future Operating Performance-Evidence from Taiwan Semiconductor Industry

• Main Authors: Ching-YuWang, 王靖渝
• Other Authors: Jeng-Fang Chen
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/09371095225230597736

碩士 === 國立成功大學 === 財務金融研究所在職專班 === 101 === This study investigates whether R＆D expenditure is associated with higher level of future performance in semiconductor industry and its three sub-industries: IC design industry, manufacturing industry, and packaging/testing industry. The empirical results show that the R＆D expenditure is negatively associated with the future performance in semiconductor industry, suggesting that R＆D expnding hurts future profitability. However, I find that the interaction term between R＆D expenditure and the number of patents is positively associated with the future performance in semiconductor industry, suggesting that R＆D spending could increase future performance when R＆D activities can finally lead to more patents. Finally, I find that my results in seminductor industry are driven by its IC design sub-industry.