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R&D, Advertising And The Market Value Of Internet Firms, Damir Tokic
R&D, Advertising And The Market Value Of Internet Firms, Damir Tokic
Theses and Dissertations - UTB/UTPA
The purpose of this study is to explain the valuation of Internet firms during the valuation “bubble” period from 1996 to 2000. The theoretical foundation of the study is the investment opportunities approach to the valuation of growth shares. Consistent with predictions of the investment opportunities approach, the results show a positive and statistically significant relationship between the market value of Internet firms and investments in R&D and advertising in each year of the sample period. These findings strongly support the view that R&D and advertising are intangible assets. The investment opportunities approach also predicts a positive relationship between market …