Organization capital effect in stock returns—The role of R&D
Journal
Journal of Business Finance and Accounting
Date Issued
2022
Author(s)
Abstract
Previous studies document a strong organization capital effect in stock returns. We investigate whether and how research and development (R&D) activities affect this organization capital effect. We find that the organization capital effect is stronger in firms with R&D activities. The annual abnormal return of the hedge portfolio sorted by organization capital is 2.41% for R&D firms but only 0.41% for non-R&D firms. Further analyses show that the organization capital effect can be attributed to R&D characteristics rather than R&D risk factors. ? 2022 John Wiley & Sons Ltd
SDGs
Type
journal article