International Journal of Internet, Broadcasting and Communication

  • 제13권2호
  • /
  • Pages.36-42
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  • 2021
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  • 2288-4920(pISSN)
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  • 2288-4939(eISSN)
한국인터넷방송통신학회 (The Institute of Internet, Broadcasting and Communication)
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Impact of COVID-19 on R&D Cost Stickiness in IT industry

  • Kwak, Ji-Young (Department of Business Administrations, Semyung University) ;
  • Lee, Jung-wha (School of business, George Mason University) ;
  • Jo, Eun Hye (School of business, SungKyunKwan university)
  • 투고 : 2021.02.04
  • 심사 : 2021.02.10
  • 발행 : 2021.05.31
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초록

This study aims to examine whether there are some differences in the cost stickiness of R&D expenses of IT companies before and after the COVID-19 crisis. Before COVID-19, IT companies did not reduce R&D expenses even if sales decreased, resulting in cost stickiness. As a result, it appears that during the COVID-19, IT companies adjust R&D expenses in proportion to changes in sales. This is interpreted as a reduction in R&D investment, which takes a long time to create results, in case of a decrease in sales due to uncertainty in future management performance due to the COVID-19 pandemic. In other words, during the COVID-19 risk period, IT companies, like other companies, reduced R&D expenses as sales decreased, resulting in reduced cost stickiness. This study differs from existing literature in that it examines the impact of the COVID-19 pandemic on the R&D expenditure behavior of companies in the IT industry.

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과제정보

This paper was supported by the Semyung University Research Grant of 2016

참고문헌

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