Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
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Impact of R&D Expenditure Size on financial Performance Focused on the IT Service Industry

IT서비스 기업의 연구개발 투자규모와 재무성과와의 관계 분석

  • 이연희 (포항공과대학교 기술경영대학원) ;
  • 이혜진 (포항공과대학교 기술경영대학원)
  • Published : 2009.09.30
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Abstract

Due to economic turbulence and fierce competition in the IT service industry, companies have been seeking breakthrough of offerings by investing in research and development (R&D). This paper aims to examine the impact of R&D expenditure size on financial performance focusing on Korean IT service companies. The expected growth rate of revenue and net profit in the upcoming two years were analyzed based on three groups according to different R&D expenditure rates using collected data from 100 of IT service companies. Unlike our presumptions, our finding presents a non-significant relationship between the R&D expenditure size and companies' financial performance. An interesting result among others is that all companies invested in R&D strongly believe there will be an increase of their financial performance in the future.

Keywords

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