How Do Globalization, R&D and Global Patent Right Affect Their Firm Values: The Case of Korean IPO Firms

• 발행기관: 한국무역연구원
• 저자명: 김성환(Sung-Hwan Kim) 임동민(Dong-Min Lim) 김진산(Jin-San Kim)
• 간행물 정보: 『무역연구』제16권 제6호, 259~277쪽, 전체 19쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2020.12.30

영문 초록

Purpose - This study investigates how the intensity of newly listed firms’ globalization activities affects IPO underpricing and long-term under-performance phenomena in Korea. Design/Methodology/Approach - This study uses a merged data set of accounting, financial market, and patent rights from 570 IPOs listed on Korea Exchange (KRX) from 2002 to 2016. We collect data from KIS (Korea Information Service) - Value, IPO Stock Inc., and WIPS databases. Then, we formally test our hypotheses using multivariate regression models, with linear and non-linear quadratic terms in the models. Findings - First, the globalization of Korean IPO firms does not show any effects on IPO initial returns, while their exports show a negative effect on initial returns. Second, R&D intensity exhibits an inverse U-shaped relationship with initial abnormal returns right after IPO lasting only up to one year. Third, the effects of high initial returns on long-term stock returns are positive from the second year after IPO, lasting for 4 more years. Fourth, the numbers of patent rights, total, local and global, show an inverse U-shaped relationship with long-term stock returns, which are statistically negative in regressions only in the first year after IPOs. Research Implications - We find that Korean IPO firms’ globalization has little impact on IPO underpricing and long-term underperformance. Rather, R&D expenditures aggravate information asymmetry for IPO firms while the patent rights alleviate information asymmetry. Investors’ responses in Korean stock markets are somewhat different from related literature.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Hypotheses and Test Models

Ⅳ. Data and Regression Analyses

Ⅴ. Conclusion

References

키워드

Globalization IPO Underpricing Long-Term Underperformance Patent Rights R&D