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R&D and Tobin's q in an emerging financial market: the case of the Athens Stock Exchange

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  • Efstathios G. Parcharidis

    (Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece)

  • Nikos C. Varsakelis

    (Department of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece)

Abstract

This paper aims at providing further evidence on the consequences of R&D investment on Tobin's q for firms publicly traded in an emerging financial market. Panel data methodology is applied using data for the manufacturing and computer firms listed in the Athens Stock Exchange, a market classified as emerging by the major securities analysts, for the period 1996-2004. The empirical findings show first, that the Greek firms' R&D investment effect on the market value of a firm is consistent with other US and European studies. Second, the impact of the R&D investment on the market value is higher for small firms. The findings of this paper may have significant industrial and technological policy implications for other emerging markets sharing similar characteristics to Greece. Copyright © 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Efstathios G. Parcharidis & Nikos C. Varsakelis, 2010. "R&D and Tobin's q in an emerging financial market: the case of the Athens Stock Exchange," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 353-361.
    • Handle: RePEc:wly:mgtdec:v:31:y:2010:i:5:p:353-361
    DOI: 10.1002/mde.1493
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    References listed on IDEAS

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    2. Shital Jhunjhunwala & Shweta Sharda & J. P. Sharma, 2021. "Translating Innovation into Performance: Understanding Role of the Board," Indian Journal of Corporate Governance, , vol. 14(1), pages 9-26, June.

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