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Title: The stock market valuation R&D investments : evidence from the UK
Author: Hirsh, Said
ISNI:       0000 0004 2727 524X
Awarding Body: University of Bristol
Current Institution: University of Bristol
Date of Award: 2011
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This thesis considers the short term stock market reaction to the launch of R&D projects, the implications to the risk characteristics of the announcing firms, and the long term market valuation ofR&D active firms in the UK's stock exchange. As part of the work a survey of the literature on the valuation of R&D investments and expenditures is carried out. The results show that in the short-term, the market reacts positively to R&D project announcements although the magnitude of the reaction is larger for firms with high R&D intensity. However, contrary to the predictions of real options theory, there is no evidence that these announcements result in a change in risk characteristics. Meanwhile, in relation to the long term valuation of R&D in the UK's stock markets, the results show that the market does account for R&D expenditures over the period 1996 to 2006. However, there is still uncertainty around R&D active stocks. The overall aim of this work is to contribute to the literature on R&D in the UK and provide empirical evidence with the small data that is available and the short cycle that technology stocks have experienced.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available