Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 29-41 |
| Number of pages | 13 |
| Journal | Information Technology and Management |
| Volume | 14 |
| Issue number | 1 |
| DOIs | |
| State | Published - Mar 2013 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 9 Industry, Innovation, and Infrastructure
Keywords
- Corporate governance
- Economic growth
- Firm performance
- Foreign ownership
- R&D
Fingerprint
Dive into the research topics of 'The role of R&D and corporate governance in Korea: IT firms versus non-IT firms'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver