Relationship between R&D intensity and the value, operating performance and systematic risk of businesses
The DEMS Management Seminar series is proud to host
Emanuele Teti
(Università di Pisa e SDA Bocconi)
ABSTRACT
This study contributes to the academic debate by analysing the joint effects of R&D intensity on value-creation, business performance, and in terms of systematic risk.The results obtained revealed the existence of a positive and statistically significant relationship between R&D intensity and value. The effect of R&D investment on the firm performance (in terms of ROA) is observed only on long-term performance, while a negative relationship has been detected within the span of a single business year. Furthermore, R&D intensity also increases beta (systematic risk), as also reported by a considerable part of the academic literature.The results may be of interest for the management of businesses to implement R&D projects under the control of the critical variables highlighted to monitor the sustainability of investments and the timing of results. The considerations that emerged from our study could have implications for the design of research-stimulating policies.
Emanuele Teti, PhD. is an Associate professor of Corporate Finance at University of Pisa and Affiliate Professor of Corporate Finance at Bocconi University and SDA Bocconi, Milan. He teaches Corporate Finance (Italian and English) and Entrepreneurial finance (English) both in the Bachelor and Master of Science courses. At SDA School of Management, he is in charge of some courses and masters, such as MCF, Master in Corporate Finance. He is also the author of several papers published in different scientific peer-reviewed journals. He has also authored or co-authored books on topics related to business and corporate finance. His main research and teaching interests include corporate finance and entrepreneurial finance, focusing on ESG themes, innovation, culture and entertainment, capital structure and value generation. Emanuele is qualified for the position of Full Professor, scientific field 13/B4 (Economics of Financial Intermediaries and Corporate Finance), “Abilitazione Scientifica Nazionale”, MIUR.
The seminar will in presence, DEMS Seminar Room 2104, U7-2nd floor