Chan KLi M.-XLin C.-BYAN-ZHI WANG2022-04-262022-04-2620220306686Xhttps://www.scopus.com/inward/record.uri?eid=2-s2.0-85122889687&doi=10.1111%2fjbfa.12590&partnerID=40&md5=6fefec5c1b5b1a78fbda45beab14a625https://scholars.lib.ntu.edu.tw/handle/123456789/608009Previous 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]SDG9journal article10.1111/jbfa.125902-s2.0-85122889687