Strategic growth option, uncertainty, and R&D investment

被引：108

作者：

Van Vo, Lai ^{[1
]}

Huong Thi Thu Le ^{[2
]}

机构：

[1] Western Connecticut State Univ, Ancell Sch Business, 181 White St, Danbury, CT 06810 USA

[2] NE Illinois Univ, Coll Business & Management, 5500 North St Louis Ave, Chicago, IL 60625 USA

来源：

INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS | 2017年 / 51卷

关键词：

Growth option; Idiosyncratic volatility; R&D investment; Uncertainty; STOCK RETURNS; CROSS-SECTION; CASH FLOW; VOLATILITY; DYNAMICS; EQUITY; VALUATION; COSTS; DEBT; RISK;

D O I：

10.1016/j.irfa.2017.03.002

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper investigates the effect of uncertainty on R&D investment We find that firms invest more in R&D when they face higher uncertainty, as measured by idiosyncratic return volatility. We further show that the effect is more pronounced for firms in more competitive industries as well as for firms whose products have less market power. Overall, our findings support the theory of strategic growth option in which firms under competition follow preemptive strategy when they face high uncertainty. (C) 2017 Elsevier Inc. All rights reserved.

引用

页码：16 / 24

页数：9

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