A CASE STUDY OF STATISTICAL RELATIONS BETWEEN INITIAL PUBLIC OFFERING FIRMS (IPO) ACCOUNTING PERFORMANCE AND R & D INVESTMENT IN KOREA

Weon Jae Kim ()
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Weon Jae Kim: Professor of the Dept. of International Business University of Incheon, Korea.

Far East Journal of Psychology and Business, 2012, vol. 8 No 2 Paper 3 August, issue 3, 43-52

Abstract: This paper deals with the evaluation of financial performance of the randomly selected 100 Korean IPO firms, including 15 energy- saving ones, for the coming 3 years through some statistical tests as a functio n of R & D investment made for the previous 3 years before their IPOs. The followings are main hypotheses: 1. The statistical tests for change in annual sales volume and total stock value over that in R & D investment made previous 3- year before IPO are hypothesized to result in a positive relationship. Specifically, the R & D investment is hypothesized to show a prolonged effect in the firms accounting perform ance for many years after IPO. If the statistical tests result in positive with a satisfactory significance level, the firms with R&D investment are recommended to evaluate their financial performance based not on single - term but multi -term.

Keywords: Financial Performance; IPO Firms; R & D Investment; Abnormal Earnings Effect (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Date: 2012
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