| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1003098 | Research in International Business and Finance | 2015 | 16 Pages |
Abstract
This article evaluates whether firms that invest in research and development (R&D) have better future performance and if stock market fully value such intangible investment. The results of annual cross-sectional regressions indicate a strong association between the intensity of R&D and future performance, even after controlling for other variables that affect future performance. However, after controlling for firm characteristics and risk factors, the innovative intensity was not significant in predicting future returns. In general, the results suggest that the R&D intensity is not useful for firm valuation in Brazil.
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Authors
Raphael Braga da Silva, Marcelo Cabus Klotzle, Antonio Carlos Figueiredo, Luiz Felipe Jacques da Motta,