권오섭 Ohseob Kwon , 박선영 Sun-young Park
DOI:10.24056/KAR.2024.08.001 KAR Vol.49(No.4) 1-32, 2024
Abstract
This paper investigates the impact of earnings comparability, adjusted for R&D expenditures, on R&D efficiency as measured by the Research Quotient (RQ), focusing on profitability. Covering the period from 2012 to 2020, the study analyzes the comparability of firms listed on KOSPI and KOSDAQ using a measurement method adapted from De Franco et al. (2011). It evaluates R&D efficiency using the RQ, as defined by Cooper et al. (2022). The RQ, indicating the elasticity of revenue in response to changes in R&D expenditures, facilitates the direct assessment of the effectiveness of R&D investments. Empirical analysis reveals that greater comparability among firms negatively impacts the RQ, indicating that when firms exhibit higher earnings comparability, the returns on increased R&D expenditures diminish. Additionally, an interaction between industry competition intensity and earnings comparability positively impacts the RQ, illustrating that intensified competition and proactive R&D investments lead to technological advancements, reducing the scale of R&D inputs and enhancing profitability through market expansion. This study distinguishes itself by focusing on earnings comparability among firms from a competitive standpoint and analyzing the direct efficiency of R&D investments relative to outcomes. It also highlights the importance of exploring the positive spillover effects of industry competition on the relationship between earnings comparability and R&D efficiency.
Key Words
비교가능성, 연구개발효율성, 연구계수, 파급효과, 산업경쟁, financial statement comparability, R&D efficiency, research quotient, spillover effect, industry competition