Innovative intensity and its impact on the performance of firms in Brazil

Raphael Braga da Silva, Marcelo Klotzle, Antonio Carlos Figueiredo and Luiz Felipe Jacques da Motta

Research in International Business and Finance, 2015, vol. 34, issue C, 1-16

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.

Keywords: Research and development; Innovation; Performance; Returns (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:34:y:2015:i:c:p:1-16

DOI: 10.1016/j.ribaf.2014.11.001

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