文档介绍：IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 52, NO. 1, FEBRUARY 2005 3
The Effects of R&D and Advertising on Firm
Value: An Examination of Manufacturing
and Nonmanufacturing Firms
Yew Kee Ho, Hean Tat Keh, and Jin Mei Ong
Abstract—Firm spending on innovation and marketing, as a period of 40 years (1962–2001) shows that the mean R&D
measured by research and development (R&D) and advertising intensity (R&D expenses as a percentage sales) of manu-
expenses, respectively, are expected to yield positive returns in facturing firms is more than twice that of the nonmanufacturing
terms of share price performance. Given resource limitations,
firms prioritize the quantum of their investments in R&D and firms, ., % and %, respectively, while the mean adver-
advertising vis-à-vis other investments. We examine the rela- tising intensities (advertising expenses as a percentage
tionship between firm performance and the intensity of their sales) of manufacturing and nonmanufacturing firms are %
investments in R&D and advertising over an extended period and %, respectively. Given the significant differences in the
covering 40 years and 15 039 firm-years. Our findings are consis- R&D and advertising intensities of both manufacturing and non-
tent with the resource-based literature. Specifically, we find that
intensive investment in R&D contributes positively to the one-year manufacturing firms, it is meaningful pare how such cap-
stock market performances of manufacturing firms but not for ital investment intensities affect firm value.
nonmanufacturing firms. We also find that intensive investment Advertising can enhance brand name recognition and create a
in advertising contributes positively to the one-year stock market reputation premium so that the mands a higher price
performances of nonmanufacturing firms. For the three-year stock relative peting products with identical physical features
market performance, in addition to the findings of the one-