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Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital./
Author:	HuangFu, JiangBo.
Description:	1 online resource (138 pages)
Notes:	Source: Dissertations Abstracts International, Volume: 85-02, Section: A.
Contained By:	Dissertations Abstracts International85-02A.
Subject:	Finance. -
Online resource:	click for full text (PQDT)
ISBN:	9798380133302

Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital.
HuangFu, JiangBo.

Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital. - 1 online resource (138 pages)

Source: Dissertations Abstracts International, Volume: 85-02, Section: A.

Thesis (Ph.D.)--Florida Atlantic University, 2023.

Includes bibliographical references

I examine the importance of corporate scientific research. It is crucial to understand the role of corporate scientific research because such a knowledge could form an appropriate response to the current decline of corporate scientific research amidst the evolving innovation ecosystem featured with growing university research and tech companies' research. R&D is often treated as a single construct in accounting and finance research for firm innovation. However, corporate scientific research ("R") has different implications for firm innovations, "R" creates new knowledge, and reduced investment in "R" may lead to a loss of internal research capability, disrupting the speed and quality of innovation. As such, it is necessary and meaningful to examine "R" separately from "R&D."Historically, corporate scientific research has played an important role in driving breakthrough innovations. Beginning in the 1980s, there has been a decline in corporate scientific research in favor of university research and tech companies' research. Consequently, this raises a question: if corporate scientific research was important, is it still important? This is a fundamental question because if corporate scientific research is still important, declining or even stagnant corporate scientific research would present an issue of concern for firms and the economy.Using the resource-based view theory, I hypothesize that corporate scientific research is positively associated with a firm's profitability. Given the risky and uncertain nature of corporate science, I hypothesize that corporate scientific research is also positively associated with cost of equity capital. I construct a publication-based corporate scientific research measure and test its association with future profitability and cost of equity capital. Findings support my hypotheses and are robust to additional tests. I further find evidence of an increase in corporate science profitability and cost of equity capital over time, in contrast with a declining relation between R&D and future profitability documented in prior literature. Moreover, firm internal use of corporate scientific research for its inventions drives the positive association between corporate scientific research and future profitability, while scientific research spillover to peer firms reduces future profitability over time. The study contributes to current accounting research on R&D investment and can provide useful implications for managers to access their internal research capabilities and to determine an optimal level of "R" in their innovation strategy. Also, the findings matter to regulators for updated or new policies on the balanced firm "R" and "D" for quality and/or successful long-term innovations.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2024

Mode of access: World Wide Web

ISBN: 9798380133302Subjects--Topical Terms:

559073
Finance.
Subjects--Index Terms:

Corporate scientific researchIndex Terms--Genre/Form:

554714
Electronic books.

Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital.
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