João Maciel de Alencar

Abstract

This dissertation investigates the role of research and development in the financial market of firms. This study shows that the proportion of research and development expenditures is higher for companies high ranked in the stock exchange. The empirical analysis emphasized that innovation and technological changes are drivers for companies’ productivity and growth, and the market appears to rewards companies’ efforts to innovate. The role of research and development for the company changed over the years and the importance of this account for the company is positively associated with the capacity of the firm to grow. This research attempted to contextualize research and development as a fragment of how the firm visionary the future, been the financial market the scale of the innovative aspect of the firm. The sample analysed corroborates with prior studies finding positive relation between research and development, market value, financial market, and residual income, as well as highlighted the importance of governments take part in the development of a solid understanding of the role of research and development to the economy.