RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY
The aim of the present study is to identify the relationship between spending on research and development (R&D) and the stock price of Brazilian companies listed for trading on the São Paulo Stock Exchange (Bovespa), following on the studies of Lopes (2001;2002) and Rezende (2005) about the valu...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Conselho Federal de Contabilidade (CFC)
2012-09-01
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| Series: | Revista de Educação e Pesquisa em Contabilidade |
| Subjects: | |
| Online Access: | http://www.repec.org.br/index.php/repec/article/view/283/628 |
| _version_ | 1818209150874681344 |
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| author | Aridelmo José Campanharo Teixeira Arildo Hungarato |
| author_facet | Aridelmo José Campanharo Teixeira Arildo Hungarato |
| author_sort | Aridelmo José Campanharo Teixeira |
| collection | DOAJ |
| description | The aim of the present study is to identify the relationship between spending on research and development (R&D) and the stock price of Brazilian companies listed for trading on the São Paulo Stock Exchange (Bovespa), following on the studies of Lopes (2001;2002) and Rezende (2005) about the value-relevance of accounting information in Brazil. This empirical-analytic study was based on the model of Collins et al. (1997), which is a proxy for the Residual Income Valuation (RIV) model of Ohlson (1995), and on the classification of technological intensity in the study of Chan et al. (1990), carried out in the United States. The sample consisted of Brazilian firms with shares traded on the Bovespa between 1996 and 2006. By means of multiple regressions we identified that R&D spending is not statistically significant for the stock prices of the firms analyzed. These conclusions do not corroborate the findings of Chan et al. (1990), but do provide support for the studies of Ohlson (1995) and Lopes (2001; 2002) and complement the study by Rezende (2005), since our results indicate that earnings is statistically significant for stock price, with a positive relationship even after deducting R&D spending accounted for as expense. The situation is different for book value, which ceased being statistically significant and being related with stock price after deducting R&D spending accounted for as investment. |
| first_indexed | 2024-12-12T04:56:09Z |
| format | Article |
| id | doaj.art-5e195bcc424a41e3a00265fae295deda |
| institution | Directory Open Access Journal |
| issn | 1981-8610 |
| language | English |
| last_indexed | 2024-12-12T04:56:09Z |
| publishDate | 2012-09-01 |
| publisher | Conselho Federal de Contabilidade (CFC) |
| record_format | Article |
| series | Revista de Educação e Pesquisa em Contabilidade |
| spelling | doaj.art-5e195bcc424a41e3a00265fae295deda2022-12-22T00:37:21ZengConselho Federal de Contabilidade (CFC)Revista de Educação e Pesquisa em Contabilidade1981-86102012-09-0163 English261276RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDYAridelmo José Campanharo TeixeiraArildo HungaratoThe aim of the present study is to identify the relationship between spending on research and development (R&D) and the stock price of Brazilian companies listed for trading on the São Paulo Stock Exchange (Bovespa), following on the studies of Lopes (2001;2002) and Rezende (2005) about the value-relevance of accounting information in Brazil. This empirical-analytic study was based on the model of Collins et al. (1997), which is a proxy for the Residual Income Valuation (RIV) model of Ohlson (1995), and on the classification of technological intensity in the study of Chan et al. (1990), carried out in the United States. The sample consisted of Brazilian firms with shares traded on the Bovespa between 1996 and 2006. By means of multiple regressions we identified that R&D spending is not statistically significant for the stock prices of the firms analyzed. These conclusions do not corroborate the findings of Chan et al. (1990), but do provide support for the studies of Ohlson (1995) and Lopes (2001; 2002) and complement the study by Rezende (2005), since our results indicate that earnings is statistically significant for stock price, with a positive relationship even after deducting R&D spending accounted for as expense. The situation is different for book value, which ceased being statistically significant and being related with stock price after deducting R&D spending accounted for as investment.http://www.repec.org.br/index.php/repec/article/view/283/628Research and developmentStock priceValue-relevanceBovespa |
| spellingShingle | Aridelmo José Campanharo Teixeira Arildo Hungarato RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY Revista de Educação e Pesquisa em Contabilidade Research and development Stock price Value-relevance Bovespa |
| title | RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY |
| title_full | RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY |
| title_fullStr | RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY |
| title_full_unstemmed | RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY |
| title_short | RESEARCH AND DEVELOPMENT AND STOCK PRICES OF BRAZILIAN COMPANIES: AN EMPIRICAL STUDY |
| title_sort | research and development and stock prices of brazilian companies an empirical study |
| topic | Research and development Stock price Value-relevance Bovespa |
| url | http://www.repec.org.br/index.php/repec/article/view/283/628 |
| work_keys_str_mv | AT aridelmojosecampanharoteixeira researchanddevelopmentandstockpricesofbraziliancompaniesanempiricalstudy AT arildohungarato researchanddevelopmentandstockpricesofbraziliancompaniesanempiricalstudy |