Research Article
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Year 2023, Volume: 15 Issue: 28, 1 - 11, 25.05.2023

Tuğba Nur İlhan Ege Emre Esat Topaloğlu

https://doi.org/10.20990/kilisiibfakademik.1232263

Abstract

Keywords

R&D Volatility Firm Value Managerial Overconfidence BIST

References

  • Baltagi, B. & Q. Li (1991). A joint test for serial correlation and random individual effects. Statistics and Probability Letters, 11, 277-280. https://doi.org/10.1016/0167-7152(91)90156-L
  • Baltagi, H. B. (2005). Econometric analysis of panel daata. England: Wiley.
  • Born, B. & J. Breitung (2016). Testing for serial correlation in fixed-effects panel data models. Econometric Reviews, 35(7), 1290-1316. https://doi.org/10.1080/07474938.2014.976524
  • Breusch, T. & A. Pagan (1980). The lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239-253. https://doi.org/10.2307/2297111
  • Duppati, G., Sune, A., & Samanta, N. (2017). Corporate governance, research and development volatility and firm performance-Evidence from Spain and Ireland. Cogent Economics & Finance, 5(1), 1-16. https://doi.org/10.1080/23322039.2017.1317117
  • Ehie, I. C. & K. Olibe (2010). The effect of R&D investment on firm value: An examination of US manufacturing and service industries. International Journal of Production Economics, 128(1), 127-135. https://doi.org/10.1016/j.ijpe.2010.06.005
  • Gao, Y., & Han, K. S. (2022). Managerial overconfidence, CSR and firm value. Asia-Pacific journal of accounting & economics, 29(6), 1600-1618. https://doi.org/10.1080/16081625.2020.1830558
  • Geroski, P. & S. Machin (1992). Do innovating firms outperform non‐innovators? Business Strategy Review, 3(2), 79-90. https://doi.org/10.1111/j.1467-8616.1992.tb00030.x
  • Hai, B., Gao, Q., Yin, X., & Chen, J. (2020). R&D volatility and market value: the role of executive overconfidence. Chinese Management Studies. 14(2), 411-431. https://doi.org/10.1108/CMS-05-2019-0170
  • Hall, B. H. (1987). The relationship between firm size and firm growth in the US manufacturing sector. The Journal of Industrial Economics, 35(4), 583–606. https://www.nber.org/system/files/working_papers/w1965/w1965.pdf
  • Hao, X., Sun, Q., & Xie, F. (2020). Does foreign exchange derivatives market promote R&D? International industry-level evidence. Economic Modelling, 91, 33-42. https://doi.org/10.1016/j.econmod.2020.05.019
  • Ho, Y. K., Keh, H. T., & Ong, J. M. (2005). The effects of R&D and advertising on firm value: An examination of manufacturing and nonmanufacturing firms. IEEE Transactions on Engineering Management, 52(1), 3-14. 10.1109/TEM.2004.839943
  • Im, K., Pesaran, H. and Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115, 53–74. https://doi.org/10.1016/S0304-4076(03)00092-7
  • Johnson, L. D. & B. Pazderka (1993). Firm value and investment in R&D. Managerial and Decision Economics, 14(1), 15-24. https://doi.org/10.1002/mde.4090140103
  • Kim, W. S., Park, K., Lee, S. H., & Kim, H. (2018). R&D investments and firm value: evidence from China. Sustainability, 10(11), 1-17. https://doi.org/10.3390/su10114133
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties”. Journal of Econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
  • Mudambi, R., & Swift, T. (2011). Proactive R&D management and firm growth: A punctuated equilibrium model. Research Policy, 40(3), 429-440. https://doi.org/10.1016/j.respol.2010.10.014
  • Mudambi, R., & Swift, T. (2014). Knowing when to leap: Transitioning between exploitative and explorative R&D. Strategic Management Journal, 35(1), 126-145. https://doi.org/10.1002/smj.2097
  • Patel, P. C., Guedes, M. J., Soares, N., & da Conceição Gonçalves, V. (2018). Strength of the association between R&D volatility and firm growth: The roles of corporate governance and tangible asset volatility. Journal of Business Research, 88, 282-288. https://doi.org/10.1016/j.jbusres.2017.12.033
  • Peseran, H. (2004). General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics Working Paper, 435.
  • Pindado, J., De Queiroz, V., & De La Torre, C. (2010). How do firm characteristics influence the relationship between R&D and firm value? Financial Management, 39(2), 757-782. https://doi.org/10.1111/j.1755-053X.2010.01091.x
  • Swift, T. (2013). R&D expenditure volatility and firm performance: Organizational and environmental contexts. International Journal of Innovation and Technology Management, 10(04), 1-17. https://doi.org/10.1142/S0219877013500132
  • Topaloğlu, E. E. (2018). Bankalarda finansal kırılganlığı etkileyen faktörlerin panel veri analizi ile belirlenmesi. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 13(1), 15-38. https://doi.org/10.17153/oguiibf.344856
  • Xiang, E., Gasbarro, D., Cullen, G., & Ruan, W. (2020). Does R&D expenditure volatility affect stock return? Journal of Contemporary Accounting & Economics, 16(3), 1-15. https://doi.org/10.1016/j.jcae.2020.100211
  • https://www.finnet.com.tr

The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul

Year 2023, Volume: 15 Issue: 28, 1 - 11, 25.05.2023

Tuğba Nur İlhan Ege Emre Esat Topaloğlu

https://doi.org/10.20990/kilisiibfakademik.1232263

Abstract

Purpose: The study aims to reveal the moderating role of managerial overconfidence in the link between R&D volatility and firm value in firms operating in the Metal Goods Sector of Borsa Istanbul during the period 2010-2020.
Design/Methodology: The moderating role of managerial overconfidence in the linkage between R&D volatility and firm value is investigated with panel data analysis.
Findings: The short-run estimates reveal positive linkage determined between R&D volatility and firm value. We also reveal that managerial overconfidence positively moderates the link between R&D volatility and firm value. In this direction, the effect of R&D volatility on firm value is higher and positive in firms where managers have excessive self-confidence.
Limitations: The fact that the sample consists of students who are only in Gaziantep and the use of three variables as a brand component are the limitations of the study.
Originality/Value: The number of studies in the literature on the relevant period and sample is limited. Therefore, the study contributes to the literature and is original.

Keywords

R&D Volatility Firm Value Managerial Overconfidence BIST

References

  • Baltagi, B. & Q. Li (1991). A joint test for serial correlation and random individual effects. Statistics and Probability Letters, 11, 277-280. https://doi.org/10.1016/0167-7152(91)90156-L
  • Baltagi, H. B. (2005). Econometric analysis of panel daata. England: Wiley.
  • Born, B. & J. Breitung (2016). Testing for serial correlation in fixed-effects panel data models. Econometric Reviews, 35(7), 1290-1316. https://doi.org/10.1080/07474938.2014.976524
  • Breusch, T. & A. Pagan (1980). The lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239-253. https://doi.org/10.2307/2297111
  • Duppati, G., Sune, A., & Samanta, N. (2017). Corporate governance, research and development volatility and firm performance-Evidence from Spain and Ireland. Cogent Economics & Finance, 5(1), 1-16. https://doi.org/10.1080/23322039.2017.1317117
  • Ehie, I. C. & K. Olibe (2010). The effect of R&D investment on firm value: An examination of US manufacturing and service industries. International Journal of Production Economics, 128(1), 127-135. https://doi.org/10.1016/j.ijpe.2010.06.005
  • Gao, Y., & Han, K. S. (2022). Managerial overconfidence, CSR and firm value. Asia-Pacific journal of accounting & economics, 29(6), 1600-1618. https://doi.org/10.1080/16081625.2020.1830558
  • Geroski, P. & S. Machin (1992). Do innovating firms outperform non‐innovators? Business Strategy Review, 3(2), 79-90. https://doi.org/10.1111/j.1467-8616.1992.tb00030.x
  • Hai, B., Gao, Q., Yin, X., & Chen, J. (2020). R&D volatility and market value: the role of executive overconfidence. Chinese Management Studies. 14(2), 411-431. https://doi.org/10.1108/CMS-05-2019-0170
  • Hall, B. H. (1987). The relationship between firm size and firm growth in the US manufacturing sector. The Journal of Industrial Economics, 35(4), 583–606. https://www.nber.org/system/files/working_papers/w1965/w1965.pdf
  • Hao, X., Sun, Q., & Xie, F. (2020). Does foreign exchange derivatives market promote R&D? International industry-level evidence. Economic Modelling, 91, 33-42. https://doi.org/10.1016/j.econmod.2020.05.019
  • Ho, Y. K., Keh, H. T., & Ong, J. M. (2005). The effects of R&D and advertising on firm value: An examination of manufacturing and nonmanufacturing firms. IEEE Transactions on Engineering Management, 52(1), 3-14. 10.1109/TEM.2004.839943
  • Im, K., Pesaran, H. and Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115, 53–74. https://doi.org/10.1016/S0304-4076(03)00092-7
  • Johnson, L. D. & B. Pazderka (1993). Firm value and investment in R&D. Managerial and Decision Economics, 14(1), 15-24. https://doi.org/10.1002/mde.4090140103
  • Kim, W. S., Park, K., Lee, S. H., & Kim, H. (2018). R&D investments and firm value: evidence from China. Sustainability, 10(11), 1-17. https://doi.org/10.3390/su10114133
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties”. Journal of Econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
  • Mudambi, R., & Swift, T. (2011). Proactive R&D management and firm growth: A punctuated equilibrium model. Research Policy, 40(3), 429-440. https://doi.org/10.1016/j.respol.2010.10.014
  • Mudambi, R., & Swift, T. (2014). Knowing when to leap: Transitioning between exploitative and explorative R&D. Strategic Management Journal, 35(1), 126-145. https://doi.org/10.1002/smj.2097
  • Patel, P. C., Guedes, M. J., Soares, N., & da Conceição Gonçalves, V. (2018). Strength of the association between R&D volatility and firm growth: The roles of corporate governance and tangible asset volatility. Journal of Business Research, 88, 282-288. https://doi.org/10.1016/j.jbusres.2017.12.033
  • Peseran, H. (2004). General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics Working Paper, 435.
  • Pindado, J., De Queiroz, V., & De La Torre, C. (2010). How do firm characteristics influence the relationship between R&D and firm value? Financial Management, 39(2), 757-782. https://doi.org/10.1111/j.1755-053X.2010.01091.x
  • Swift, T. (2013). R&D expenditure volatility and firm performance: Organizational and environmental contexts. International Journal of Innovation and Technology Management, 10(04), 1-17. https://doi.org/10.1142/S0219877013500132
  • Topaloğlu, E. E. (2018). Bankalarda finansal kırılganlığı etkileyen faktörlerin panel veri analizi ile belirlenmesi. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 13(1), 15-38. https://doi.org/10.17153/oguiibf.344856
  • Xiang, E., Gasbarro, D., Cullen, G., & Ruan, W. (2020). Does R&D expenditure volatility affect stock return? Journal of Contemporary Accounting & Economics, 16(3), 1-15. https://doi.org/10.1016/j.jcae.2020.100211
  • https://www.finnet.com.tr
There are 25 citations in total.

Details

Primary Language Turkish
Subjects Finance
Journal Section RESEARCH PAPERS
Authors

Tuğba Nur 0000-0002-0974-4896

İlhan Ege 0000-0002-5765-1926

Emre Esat Topaloğlu 0000-0001-8771-779X

Publication Date May 25, 2023
Published in Issue Year 2023 Volume: 15 Issue: 28

Cite

APA Nur, T., Ege, İ., & Topaloğlu, E. E. (2023). The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul. Akademik Araştırmalar Ve Çalışmalar Dergisi (AKAD), 15(28), 1-11. https://doi.org/10.20990/kilisiibfakademik.1232263
AMA Nur T, Ege İ, Topaloğlu EE. The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD). May 2023;15(28):1-11. doi:10.20990/kilisiibfakademik.1232263
Chicago Nur, Tuğba, İlhan Ege, and Emre Esat Topaloğlu. “The Moderator Role of Managerial Overconfidence in the Relationship Between R&D Volatility and Firm Value: An Application in Borsa Istanbul”. Akademik Araştırmalar Ve Çalışmalar Dergisi (AKAD) 15, no. 28 (May 2023): 1-11. https://doi.org/10.20990/kilisiibfakademik.1232263.
EndNote Nur T, Ege İ, Topaloğlu EE (May 1, 2023) The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD) 15 28 1–11.
IEEE T. Nur, İ. Ege, and E. E. Topaloğlu, “The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul”, Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD), vol. 15, no. 28, pp. 1–11, 2023, doi: 10.20990/kilisiibfakademik.1232263.
ISNAD Nur, Tuğba et al. “The Moderator Role of Managerial Overconfidence in the Relationship Between R&D Volatility and Firm Value: An Application in Borsa Istanbul”. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD) 15/28 (May 2023), 1-11. https://doi.org/10.20990/kilisiibfakademik.1232263.
JAMA Nur T, Ege İ, Topaloğlu EE. The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD). 2023;15:1–11.
MLA Nur, Tuğba et al. “The Moderator Role of Managerial Overconfidence in the Relationship Between R&D Volatility and Firm Value: An Application in Borsa Istanbul”. Akademik Araştırmalar Ve Çalışmalar Dergisi (AKAD), vol. 15, no. 28, 2023, pp. 1-11, doi:10.20990/kilisiibfakademik.1232263.
Vancouver Nur T, Ege İ, Topaloğlu EE. The Moderator Role of Managerial Overconfidence in the Relationship between R&D Volatility and Firm Value: An Application in Borsa Istanbul. Akademik Araştırmalar ve Çalışmalar Dergisi (AKAD). 2023;15(28):1-11.
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