The Firm Performance following R&D Reduction: Evidences from Taiwan

• Main Authors: We-Tei Lu, 呂威德
• Other Authors: 雷立芬
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/71528392670250205139

碩士 === 國立臺灣大學 === 農業經濟學研究所 === 104 === Most of the literatures on R&D only demonstrated if increase in investment of R&D has a positive impact or negative impact on the company''s future performance. Only few of them examine how reduction in R&D investment may have a positive impact on the company''s future performance in United States. As Taiwan having no previous research on this issue, this study attempted to explore how reduction in investment in R&D generate significant changes in operating performance and abnormal returns by making use of the data including stock price from Taiwanese industries. In addition, this study categorizes the targeted industries into two groups: industries with high intensity of R&D and industries with low intensity of R&D. With calculating the abnormal returns by using the buy and hold abnormal returns method and calendar time portfolio method, the result, which coincide with Eberhart、Maxwell and Siddique(2004) point of view, reveals that the whole industry and industries with low R&D intensity have a negative abnormal returns; therefore, it provides a significant counterevidence for the efficient market hypothesis. For the part of investigating operating performance. The result manifests that industries with high R&D intensities have a significant positive abnormal half performance; combining the observation of their long-term abnormal returns, it can conclude that the performance of industries with high intensity of R&D consist with R&D spillovers hypothesis. Moreover, industries with low R&D intensity show a half significant negative abnormal performance. With observing the long-term abnormal returns, we can also conclude that industries with low R&D intensity provide an wrong signal to investor; also, reduction in R&D is definitely a inefficient decision of investment.