ABSTRACTS:
To look at the impact of research and development (C&D) costs on the market value of an enterprise, we select the sample of European companies listed for the period 2005 - 2014. Through linear analytical methods to evaluate the impact of R&D costs on the market value of the stock. Research shows that the more innovative a business is the higher the market value. However, the impact of R&D on corporate value is different in cach countries due to the legal and financial environment. The paper then proposes some suggestions for Vietnamese enterprises to improve their competitiveness.
Keywords: Competitiveness, research and development costs, market value of enterprises, European enterprises.
1. Current status of R&D activities in Vietnam
In the context of deepening
integration, Vietnamese enterprises are facing the challenge that the 4.0
revolution is approaching, requiring enterprises to invest in innovation to
improve their competitiveness. According to the Science and Technology Law of
2013: In order to encourage enterprises to invest in the development of science
and technology, the state allows enterprises to set up scientific and
technological development funds from the profits thereby reducing the corporate
income tax. However, according to a survey conducted within the framework of
the Vietnam Science and Technology Assessment Scheme (RIP) in 2014, R&D
activities in enterprises are still low. Only 8.5% of firms in the sample chose
to have this activity.
2. Set the problem
The role of innovation has been pointed out by Schumpeter as a reward for increasing revenue, the market value of the business. The research after the following indicates that knowledge in the enterprise is the key to success and creating value competition that no other enterprise can easily copy and operate the business of increasing business.
One of the key inputs in the enterprise to create innovation is the cost of R&D. There are a lot of researches that mention R&D costs as variables that represent innovation in the enterprise and consider it with corporate governance issues. However, as far as we know, no study has compared the impact of R&D spending in European countries, especially considering related issues such as environmental Business school, legal environment and finance. This research is aimed at contributing to the theoretical foundations of innovation in general and R&D in particular.
3. Studies have been done
R&D is an important contribution to creating value through innovation. R&D is an input to this process and is one of the keys to future business growth. If R&D is the cost of research inputs to the innovation process, the output can be viewed in various ways such as the number of patents, the number of patents cited in The process of innovation in the product or in the process of innovation in production. Griliches (1981) was one of the first researchers to present in their paper on innovation in business and using R&D costs as a dependent variable. His research demonstrates that investing in R&D will increase the value of intangible fixed assets and increase the performance of the business. These studies are divided into two groups: Group 1 is studying the impact of R&D on performance (typically Griliches, 1995, Mairessse and Mohen, 1996, Hall, 2009); Group 2 is the impact on the market value of the business (Cockburn and Griliches, 1988; Chauvin and Hirschey, 1993; Hall 1993, Sougiannis, 1994; Stark and Thomas, 1998, Toivanen et al 2002, Pindado et al., 2010).
There is also a group of published studies reporting the impact of differences in regulatory and financial environments that can have a dramatic impact on the value of R&D investments. For example, a study by Bae and Kim (2003) showed that R&D costs have a greater impact on the market value of firms in Japan than in US firms. The reason is that in Japan, businesses are still reliant on capital mobilization channels, which are banks and credit institutions, while in the US, businesses favor the use of financial market channels to fund investment projects. The control of banks and credit unions is often closer to and closer to investors in the financial markets, and therefore the impact of R&D investment. The value of business in Japan is stronger than in the United States.
4. Research methods and data
To consider the R&D impact on the value of the business, we used the same model as in Ohlson (1989) and Green et al. (1996), Stark and Thomas (1998). This model points out that enterprise value is measured by the profit derived from the exploitation of existing assets owned by the business and the future growth opportunities of the business thanks to investments in R&D today. This profit is the margin of profit that has been adjusted after the risk has been removed.
In the research model, the Firm Value (FV) value has a linear relationship with the Book Value (BV), the after-tax profit margin (RI is calculated as RIi,t = (EBITi,t - ki,tBVi,t-1) where k, t is the adjusted risk capital cost (Ohlson (1989, 1995)) and R & D costs. We will use these values divided by the book value of the business to eliminate the effect of the difference in size between enterprises. Some of the other denominations that are used in the same way are revenue, the number of stocks currently in circulation (Hirschey, 1985), (Rees, 1997). The regression model we used was:
FVi,t = β0 + β1(RIi,t/BVi,t) + β2(RDi,t/BVi,t) + β3Ln_Salei,t + β4MRKSHAREi,t + β5LEVi,t + δi,t
Inside: FV is the market value enterprise, RI is the after-tax profit margin, RD is the cost of R&D, BV is the book value of the company, Ln_Sale is the natural logarithm of revenue, MRKSHARE is the market share of the company, LEV is the financial leverage of the company.
We only consider R&D in the current year, and for R&D in the past it is assumed to have created a tangible asset and thus the return reflects fully the profitability of these assets. (Sougiannis (1994), Green et al. (1996), Toivvanen et al. (2002)).
According to some previous studies (Green et al. (1996)), the market value of equity and debt capital at time t (MVi,t) is usually measured six months after the end of the year finance. This calculation has the advantage that investors and analysts will appreciate the value of the company reflected after a sufficient period of time for interested parties to "infiltrate" the information. Last published of that fiscal year.
We use data from European countries to look at the value of the business and the cost of R&D. Initial data provided by the European Statistical Office EUROSTAT for all of Europe's top 1.000 R&D investments is reported from 2005 to 2014 but we only filter data Some of the European countries include: England, Germany, France, Sweden and Italy. These are the EU Industrial Scoreboards that account for 80% of the sample and R&D accounts for 75% of the total value of the sample. We also use data from Bureau van Dijk (OSIRIS) to collect other information used in the study. After eliminating inadequate data, we have a sample of 416 companies, including 136 in the UK, 122 in Germany, 75 in France and 53 in Sweden, and 30 in Italy.
5. Research results and evaluation of results
Table 2 and Table 3 show the basic summaries of the variables used in the study and the relationships between the variables.
Table 2 provides information on summary statistics for major variables in countries during the considered period. The number of businesses is shown in the last line of the table. The FV value is a dependent variable. FV is the market value of the business taken randomly 6 months after the closing of the fiscal year. BV is the book value of the business at the end of each year. RI is the value of R&D, MRS is the value of the market share of the business, LEV is the value of the R&D cost. The total value of debt on equity, Ln_Sales is the natural logarithm of revenue at the end of the financial year.
Table 3 shows the correlation between pairs of variables in the study. Can be seen between FV and RD/BV; The correlation between FV and RI/BV was statistically significant at 5% or higher with corresponding correlation coefficients of 0.687 and 0.658. The correlation between RI/BV and RD/BV was not too strong.
Table 4 presents the results of the
study using a fixed-effects regression model after being tested with
appropriate tests. Table 3 shows the relationship between FV dependent
variables and independent variables according to the countries in the sample.
The number of observations for each country is represented by seven in the last
line of table (N).
Research results show that R&D costs have a positive relationship with the value of the business regardless of which industry or European country our sample is in. This is evident in Table 4, where the coefficient of the independent variable is the same as the R&D cost that is in the same direction as the enterprise value. This result was statistically significant and was demonstrated in all study countries except in Italy. The results were statistically significant, especially confirming previous research (Hughes, 2008). The results of European countries are quite similar except for Italy. The reason for the difference in Italy in the European map is that the system of Italian business reports still does not appreciate the role of R&D in the enterprise.
Moreover, the cost of R&D in countries is different so it also affects the results of research. Some enterprises have invested heavily in R&D but are not accounted for in financial statements or because of the large cost that should be allocated over the years. However, this allocation does not yet reflect the level of investment expenditure. Honestly. A lot of businesses, despite spending money but not accounting, also make research difficult when the data is not high enough. However, we have made every effort to obtain a data set that assesses the impact of R&D on business value in different countries in Europe.
6. Conclusion and some policy suggestions
Research and investment in innovation continues to grow rapidly in businesses around the world. Although not all businesses that make high R&D spend do innovation in their businesses. However, from a financial perspective, looking at a quantity that represents the innovation endeavors of the business is hardly a substitute for the cost of R&D.
Through this research we reaffirmed the role of innovation in the enterprise through R&D to the increase in business value and its differentiation in different business environments. So Vietnam is increasingly integrating into the world economy and thus, in order to improve its competitiveness, it is required that Vietnamese businesses invest more in R&D.
Besides, need new account to account R&D details:
According to TT200/TT-BTC, there are no accounts showing clearly how much money is spent on science and technology investment. If you still take into account 642 - expense account of business, it will be difficult to distinguish from other activities of the business. In our opinion, to contribute to the transparency of information on financial statements, it should be 642 account details or put into a new account so that investors who want to invest in the business can just look at This account is known whether the enterprise does research investment innovation or not. The results from our research also show that although R&D costs are positive in many countries, they increase the value of the business. Wishing to disclose information about how much R&D costs should be hidden in the financial statements due to concerns about competition and business secret ■
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TÁC ĐỘNG CỦA CHI PHÍ NGHIÊN CỨU VÀ PHÁT TRIỂN (R&D)
TỚI GIÁ TRỊ DOANH NGHIỆP: XEM XÉT MẪU DOANH NGHIỆP
CHÂU ÂU NIÊM YẾT VÀ MỘT SỐ GỢI Ý CHO
DOANH NGHIỆP VIỆT NAM
● TS. DIÊM THỊ THANH HẢI
● TS. BẠCH THỊ THANH HÀ
Khoa Tài chính doanh nghiệp, Học viện Tài chính
TÓM TẮT:
Để xem xét tác động của chi phí nghiên cứu và phát triển (R&D) đến giá trị thị trường của doanh nghiệp, chúng tôi chọn mẫu gồm các doanh nghiệp châu Âu niêm yết trong giai đoạn 2005 - 2014. Thông qua các phương pháp phân tích tuyến tính để đánh giá tác động của chi phí R&D lên giá trị thị trường của cổ phiếu. Nghiên cứu chỉ ra rằng các doanh nghiệp càng đổi mới, sáng tạo thì giá trị thị trường càng cao. Tuy nhiên, tác động của chi phí R&D đến giá trị doanh nghiệp sẽ không giống nhau ở các quốc gia khác nhau do yếu tố môi trường pháp luật và tài chính. Từ đó, bài viết đề xuất một số gợi ý để doanh nghiệp Việt Nam nâng cao khả năng cạnh tranh.
Từ khóa: Khả năng cạnh tranh, chi phí nghiên cứu và phát triển, giá trị thị trường doanh nghiệp, doanh nghiệp châu Âu.
