The role of R&D and corporate governance in Korea: IT firms versus non-IT firms
- Authors
- Hwang, Joon Ho; Kim, Min-Su; Chun, Se-Hak
- Issue Date
- 3월-2013
- Publisher
- SPRINGER
- Keywords
- Economic growth; R& D; Firm performance; Corporate governance; Foreign ownership
- Citation
- INFORMATION TECHNOLOGY & MANAGEMENT, v.14, no.1, pp.29 - 41
- Indexed
- SSCI
SCOPUS
- Journal Title
- INFORMATION TECHNOLOGY & MANAGEMENT
- Volume
- 14
- Number
- 1
- Start Page
- 29
- End Page
- 41
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/103781
- DOI
- 10.1007/s10799-012-0142-9
- ISSN
- 1385-951X
- 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.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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