Firm size and the effect of R&D on Tobin's q
Article first published online: 18 MAR 2005
Volume 35, Issue 2, pages 217–223, March 2005
How to Cite
Connolly, R. A. and Hirschey, M. (2005), Firm size and the effect of R&D on Tobin's q. R&D Management, 35: 217–223. doi: 10.1111/j.1467-9310.2005.00384.x
- Issue published online: 18 MAR 2005
- Article first published online: 18 MAR 2005
Significant market value effects of research and development (R&D) are generally apparent, but aggregate evidence has the potential to obscure meaningful differences according to firm size. Consistent with findings reported by Chauvin and Hirschey (1993) for the late 1980s, valuation effects of R&D remain somewhat greater for larger as opposed to smaller firms.