Status and Trend of R&D Disclosures: A Study of Selected Organizations in India
DOI:
https://doi.org/10.17010/ijf/2014/v8i6/71912Keywords:
R&D
, R&D Expenditure, R&D Intensity, Qualitative Disclosures, Research and DevelopmentM11
, M40, M41, M49Paper Submission Date
, December 12, 2013, Paper sent back for Revision, February 2, 2014, Paper Acceptance Date, April 15, 2014.Abstract
The present study was undertaken to explore the R&D activities of selected companies in India. An attempt has been made to find out variations relating to R&D activities among various sectors and companies. R&D activities for the purpose of this study included the amount of R&D expenditure as well as other R&D disclosures made in the annual reports of the companies. Content analysis was used for measuring qualitative disclosures. Five companies each from five sectors, namely, biotechnology, pharmaceuticals, information technology (IT), food, and fertilizers, with the period of analysis covering 10 years from 2002-03 to 2011-12, were included in the study. Results indicate that pharmaceuticals and biotechnology are the leading sectors for R&D intensity in India. Overall, a positive growth was observed for R&D activities across the board. Significant positive correlation was found between R&D expenditure and qualitative R&D disclosures.Downloads
Downloads
Published
How to Cite
Issue
Section
References
Anandarajan, A., Chiang, S., & Lee, P. (2010). R & D tax credit and operating performance: Implications for managers. Management Decision, 48 (8), 1198-1211. DOI:10.1108/00251741011076744
Andries, P., & Wastyn, A. (2012). Disentangling value-enhancing and cost-increasing effects of knowledge management. Journal of Knowledge Management, 16 (3), 387-399. DOI:10.1108/13673271211238724
Belderbos, R., Carree, M. A., Diederen, B., Lokshin, B., & Veugelers, R. (2004). Heterogeneity in R&D cooperation strategies. International Journal of Industrial Organization, 22 (8-9), 1237-1263.
Bloch, C. (2005). R&D investment and internal finance: The cash flow effect. Economics of Innovation & New Technology, 14 (3), 213-223. DOI:10.1080/1043859042000312710
Boujelben, S., & Fedhila, H. (2011). The effects of intangible investments on future OCF. Journal of Intellectual Capital, 12(4), 480-494. DOI: 10.1108/14691931111181689
Bromiley, S., & Washburn, M. (2011). Cost reduction vs. innovative search in R& D. Journal of Strategy and Management, 4(3), 196-214. DOI:10.1108/17554251111152243
Cetindamar, D., & Ulusoy, G. (2008). Innovation performance and partnerships in manufacturing firms in Turkey. Journal of Manufacturing Technology Management, 19 (3), 332-345. DOI:10.1108/17410380810853768
Chan, L. K. C., Lakonishok, J., & Sougiannis, T. (2001). The stock market valuation of research and development expenditures. The Journal of Finance, 56 (6), 2431-2456. DOI: 10.1111/0022-1082.00411
Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal of Knowledge Management, 9 (3), 101-115. DOI:10.1108/13673270510602809
Doran, J. (2012). Are differing forms of innovation complements or substitutes? European Journal of Innovation Management, 15 (3), 351-371. DOI:10.1108/14601061211243675
European Commission. (2012). EU R & D scorecard. The 2012 EU industrial R & D investment scorecard. Retrieved from http://www.iri.jrc.ec.europa.eu/docs/scoreboard/2012/SB2012.pdf
Goel, R. K., & Ram, R. (2001). Irreversibility of R&D investment and the adverse effect of uncertainty: Evidence from the OECD countries. Economic Letters, 71 (2), 287-291. DOI:http://dx.doi.org/10.1016/S0165-1765(01)00372-X
Goldfinger, C. (1997). Understanding and measuring the intangible economy: Current status and suggestions for future research. Paper presented at CIRET Seminar, Helsinki.
Griffith, R., Redding, S., & Reenen, J. V. (2001). Mapping the two faces of R&D: Productivity growth in a panel of OECD industries. The Institute for Fiscal Studies WP 02/00.
Hait, A., & Jangili (2010). Research and development expenditure in private corporate business sector. Journal of Income and Wealth, 32 (1), 56-65.
Hall, B. H. (2002). The financing of research and development. NBER Working Paper 8873. Retrieved from http://www.nber.org/papers/w8773.pdf
Hall, B. H., Mairesse, J., & Mohnen, P. (2010). Measuring the returns to R&D. United Nations University, UNU Merit Working Papers #2010-006. Retrieved from http://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.merit.unu.edu%2Fpublications%2Fwppdf%2F2010%2Fwp2010-006.pdf;h=repec:unm:unumer:2010006
Inauen, M., & Wicki, A. S. (2012). Fostering radial innovations with open innovation. European Journal of Innovation Management, 15 (2), 212-231.
India Inc tops global R & D investment growth charts. (2013, January 20). The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/industry-and-economy/india-inc-tops-global rd-investmentgrowth-charts/article4325656.ece
Indian companies top global charts for investment in R&D. (2013, January 20). The Times of India. Retrieved from http://timesofindia.indiatimes.com/business/india-business/Indian-companies-top-global-charts-for-investment-in-RD/articleshow/18099909.cms
Kang, H. (2006). Reporting intangible assets: Voluntary disclosure practices of the top emerging market companies (Ph.D. Dissertation). The University of New South Wales, Australia.
Kang, H., & Gray, S.J. (2011). The content of voluntary intangible asset disclosures: Evidence from emerging market companies. Journal of International Accounting Research, 10 (2), 109-25. DOI: http://dx.doi.org/10.2308/jiar.2011.10.1.109
Koch, A. (2011). Firm-internal knowledge integration and the effects on innovation. Journal of Knowledge Management, 15 (6), 984-996. DOI:10.1108/13673271111179325
Lang, M., & Lundholm, R. (1993). Cross-sectional determinants of analyst rating of corporate disclosure. Journal of Accounting Research, 31 (2), 246-271.
Lantz, J.- S., & Sahut, J. - M. (2005). R&D investment and the financial performance of technological firms. International Journal of Business, 10 (3), 251-270.
Lin, B.-W., Lee, Y., & Hung, S. - C. (2006). R&D intensity and commercialization orientation effects on financial performance. Journal of Business Research, 59 (6), 679-685. DOI :10.1016/j.jbusres.2006.01.002
Lin, P., & Saggi, K. (2002). Product differentiation, process R&D and the nature of market completion. European Economic Review, 46 (1), 201-211.
Margolis, R. M., & Kammen, D. M. (1999). Underinvestment: The energy technology and R&D policy challenge. Science, 285 (5428), 690-692. DOI: 10.1126/science.285.5428.690
Merkley, K. J. (2010). More than numbers: R&D related disclosure and firm performance. Retrieved from http://www.kellogg.northwestern.edu/accounting/papers/Merkley.pdf
Negassi, S. (2009). International R&D spillovers and economic performance of firms: An empirical study using random coefficient models. Applied Economics, 41 (8), 947-976. DOI:10.1080/00036840601019034
Othman, R., & Ameer, R. (2009). Determinants and persistence of research and development investments: Evidence from Malaysia. International Journal of Emerging Markets, 4 (3), 275-292. DOI:10.1108/17468800910968427
Rao, P. M., Chandra, R., & Shin, J. (2012). R& D offshoring in multinational enterprises: Relevance of transaction cost and internationalization theories. Competitiveness Review, 22 (5), 376-395. DOI:10.1108/10595421211266276
Serrano - Bedia, A. M., López-Fernández, M.C. L., & GarcÃa-Piqueres, G. (2010). Decision of institutional cooperation on R&D: Determinants and sectoral differences. European Journal of Innovation Management, 13 (4), 439-465. DOI: 10.1108/14601061011086285
Sharma, S. C. (2012). R & D and firm performance: Evidence from the Indian pharmaceutical industry. Journal of Asia Pacific Economy, 17 (2), 332-342. DOI:10.1080/13547860.2012.668094
Tasker, S. (1998). Bridging the information gap: Quarterly conference calls as a medium for voluntary disclosure. Review of Accounting Studies, 3 (1-2), 137-167.
Tikoria, J., Banwet, D. K., & Deshmukh, S. G. (2006). Balanced scorecard for performance evaluation of R&D organization : A conceptual model. Journal of Scientific and Industrial Research, 65 (11), 879-886.
WIPO Economics and Statistics Series. (2011). World intellectual property report: The changing face of Innovation. Retrieved from http://www.wipo.int/export/sites/www/freepublications/en/intproperty/944/wipo_pub_944_2011.pdf
Zainol, A., Nair, M., & Kasipillai, J. (2008). R&D reporting practice: A case of a developing economy. Journal of Intellectual Capital, 9 (1), 122-132. DOI:10.1108/14691930810845849
Zhang, A., Zhang, Y., & Zhao, R. (2003). A study of the R&D efficiency and productivity of Chinese firms. Journal of Comparative Econometrics, 31 (3), 444-464. DOI : 10.1016/S0147-5967(03)00055-6
