R&D premium and Takeover risk:Evidence from Taiwan biotechnology industry
| Autor: | Keng-Hsun Lin, 林耿熏 |
|---|---|
| Rok vydání: | 2018 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 106 This paper studies why biotechnology companies with relatively bad accounting performance would have higher stock returns, which implies relatively higher P/E ratio. We use the data of Taiwan Biotechnology Industry from TEJ. The first hypothesis is that companies with high R&D intensity may have higher takeover probability. The second hypothesis is that companies with high takeover probability have higher stock returns. The results find that companies with high R&D intensity have higher takeover probability, and companies with high takeover probability also have higher stock returns. The findings indicate that even companies have bad accounting performance, the reason why biotechnology firms have higher stock returns is that companies may be takeover targets in the future and thus enjoy takeover premiums. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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