TY - JOUR
T1 - The role of R&D and corporate governance in Korea
T2 - IT firms versus non-IT firms
AU - Hwang, Joon Ho
AU - Kim, Min Su
AU - Chun, Se Hak
PY - 2013/3
Y1 - 2013/3
N2 - Recent economic development in Korea was mostly driven by companies in the IT sector. Also, it is widely argued that R&D investment has a positive impact on firm value, especially for IT firms. In this paper, we analyze how R&D investment has contributed to the growth of Korea's economy by examining the effect of R&D investment on firms' market value, measured as Tobin's Q, and investigate whether this effect is different between firms in the IT sector and firms in the non-IT sector. We also account for the effect of another major change experienced by Korean firms: changes in corporate governance structure. We find that for firms in the IT industry, higher R&D investment coupled with high foreign ownership results in higher firm valuation.
AB - Recent economic development in Korea was mostly driven by companies in the IT sector. Also, it is widely argued that R&D investment has a positive impact on firm value, especially for IT firms. In this paper, we analyze how R&D investment has contributed to the growth of Korea's economy by examining the effect of R&D investment on firms' market value, measured as Tobin's Q, and investigate whether this effect is different between firms in the IT sector and firms in the non-IT sector. We also account for the effect of another major change experienced by Korean firms: changes in corporate governance structure. We find that for firms in the IT industry, higher R&D investment coupled with high foreign ownership results in higher firm valuation.
KW - Corporate governance
KW - Economic growth
KW - Firm performance
KW - Foreign ownership
KW - R&D
UR - http://www.scopus.com/inward/record.url?scp=84875409040&partnerID=8YFLogxK
U2 - 10.1007/s10799-012-0142-9
DO - 10.1007/s10799-012-0142-9
M3 - Article
AN - SCOPUS:84875409040
SN - 1385-951X
VL - 14
SP - 29
EP - 41
JO - Information Technology and Management
JF - Information Technology and Management
IS - 1
ER -
