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    Methodology Roadmap

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    disertasi.fbp
    This document outlines a study examining the impact of research and development (R&D) investment on the market value and Tobin's Q of US technology companies over 15 years from 2005-2019. It describes collecting data on 152 publicly traded companies, with observations totaling 2280. Regression analysis will be used to analyze the relationship between company value (market value and Tobin's Q) and R&D intensity, while controlling for factors like company size, growth, profitability, and leverage. The results will help quantify the effect of R&D spending on company valuation metrics.

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    Methodology Roadmap

    Uploaded by

    disertasi.fbp
    9 views4 pages
    This document outlines a study examining the impact of research and development (R&D) investment on the market value and Tobin's Q of US technology companies over 15 years from 2005-2019. It describes collecting data on 152 publicly traded companies, with observations totaling 2280. Regression analysis will be used to analyze the relationship between company value (market value and Tobin's Q) and R&D intensity, while controlling for factors like company size, growth, profitability, and leverage. The results will help quantify the effect of R&D spending on company valuation metrics.

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    This document outlines a study examining the impact of research and development (R&D) investment on the market value and Tobin's Q of US technology companies over 15 years from 2005-2019. It describes collecting data on 152 publicly traded companies, with observations totaling 2280. Regression analysis will be used to analyze the relationship between company value (market value and Tobin's Q) and R&D intensity, while controlling for factors like company size, growth, profitability, and leverage. The results will help quantify the effect of R&D spending on company valuation metrics.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views4 pages

    Methodology Roadmap

    Uploaded by

    disertasi.fbp
    This document outlines a study examining the impact of research and development (R&D) investment on the market value and Tobin's Q of US technology companies over 15 years from 2005-2019. It describes collecting data on 152 publicly traded companies, with observations totaling 2280. Regression analysis will be used to analyze the relationship between company value (market value and Tobin's Q) and R&D intensity, while controlling for factors like company size, growth, profitability, and leverage. The results will help quantify the effect of R&D spending on company valuation metrics.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    The impact of Research and Development Investment of the value of US Technology

    Companies.

    Data Collection:

    Time frame: 01/01/2005 – 31/12/2019 – 15 Years

    Market Value: $100+ Million

    Sector: US Technology (Software, hardware, internet retails ..etc)

    Operating listed since 2005 and operating more than 20 years.

    Sample: 152 Companies

    Observations: 152 * 15 = 2280

    Number of omitted companies: 60 Companies (missing information especially R&D)

    Data Source: Bloomberg Terminal

    Software: E-views

    Screen Shoot of the collected Data


    Methodology

    1. Variable Definitions

    Type Variables Definition


    Dependent Market Price Stock price multiplied by number of outstanding shares
    Dependent Tobin's Q Market value plus Total liabilities divided by Replacement cost of company’ assets
    Independent R&D Intensity R&D expenditure divided by revenue
    Control R&D² intensity R&D intensity squared
    Control Size logarithm of revenue
    Control Leverage Total debt divided by total assets
    Control Growth Current revenue minus last year revenue divided by last year revenue
    Control Age Number of ears since establishing the company
    Control Profitability Net income divided by revenue

    2. Descriptive Statistics

    Variable Mean Std Dev Min Max Observation


    Market Value
    Tobin's
    R&D
    R&D Intensity
    Size Revenue
    Growth (Revenue YOY)
    Profit Margin
    Total Debt to Total Assets
    3. Correlation Matrix – Market Value

    Market R&D Profit


    Variable Value R&D Int. Size Growth Margin Leverage
    Market Value 1
    R&D 1
    R&D Intensity 1
    Size Revenue 1
    Growth (Revenue YOY) 1
    Profit Margin 1
    Total Debt to Total
    Assets 1

    4. Correlation Matrix – Tobin’s Q

    R&D Profit
    Variable Tobin's Q R&D Int. Size Growth Margin Leverage
    Tobin's 1
    R&D 1
    R&D Intensity 1
    Size Revenue 1
    Growth (Revenue YOY) 1
    Profit Margin 1
    Total Debt to Total Assets 1

    5. Impact of R&D spending on Market Value


    Company value (Market Value): f (R&D intensity, R&D intensity squared, size,
    leverage, age, growth, profitability)

    Market Value =  + ¹ R&D¹+ R&D²+ ² Size + ³ Leverage +  Age + 


    Growth +  Profitability + 

    Variable OLS Q25 Q50 Q75 Q 100


    R&D
    R&D Intensity
    Size Revenue
    Growth (Revenue YOY)
    Age
    Profit Margin
    Total Debt to Total Assets

    6. Impact of R&D spending on Tobin’s Q

    Company value (Tobin’s Q): f (R&D intensity, R&D intensity squared, size, leverage,
    age, growth, profitability)

    Tobin’s Q =  + ¹ R&D¹+ R&D²+ ² Size + ³ Leverage +  Age + 


    Growth +  Profitability + 

    Variable OLS Q25 Q50 Q75 Q 100


    R&D
    R&D Intensity
    Size Revenue
    Growth (Revenue YOY)
    Age
    Profit Margin
    Total Debt to Total Assets

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