TL;DR — Corporate R&D investment amplifies asymmetric SG&A cost behavior: the more a firm invests in R&D, the more resources it reserves when sales decrease. Distinguishing capitalized from expensed R&D, the cost-asymmetry effect differs by accounting treatment — R&D disclosure policy reflects management's motivation for and perception of R&D.
Key findings
1. R&D-intensive firms hoard resources in downturns. Higher R&D investment → more resource retention when sales fall → stickier SG&A costs.
2. Accounting treatment carries strategy information. Capitalized R&D and expensed R&D produce different cost-asymmetry patterns, tying the disclosure choice to managers' resource-commitment decisions.
3. Implication. Outsiders can read managerial R&D commitment — not separately disclosed — from observed cost behavior.
국문 요약
기업의 R&D 투자가 판관비의 비대칭적 행태(하방경직성)를 강화한다는 실증. R&D에 많이 투자하는 기업일수록 매출 감소 시 자원을 더 유보한다. 특히 자산화 R&D와 비용화 R&D를 구분하면 원가행태에 미치는 효과가 달라 — R&D 회계처리(공시정책)가 경영자의 투자 동기·인식을 반영함을 보여준다.
FAQ
Q. Why do R&D-intensive firms keep resources when sales fall? R&D embodies long-horizon strategic commitments; cutting adjustment-costly resources would jeopardize future innovation payoffs, so managers deliberately carry slack through downturns.
Q. Related work by the authors? Ko, Chung & Woo (2022, Korean Accounting Review) extends this to innovation implementation: innovating firms exhibit greater cost stickiness, concentrated in pessimistic conditions.
How to cite
APA: Ko, H., Chung, Y., & Woo, C. (2021). Choice of R&D strategy and asymmetric cost behaviour. Technology Analysis & Strategic Management, 33(9), 1022–1035. https://doi.org/10.1080/09537325.2020.1862786
BibTeX:
@article{ko2021rdcost,
title={Choice of R\&D strategy and asymmetric cost behaviour},
author={Ko, Hyesoo and Chung, Yanghon and Woo, Chungwon},
journal={Technology Analysis \& Strategic Management},
volume={33}, number={9}, pages={1022--1035}, year={2021},
doi={10.1080/09537325.2020.1862786}}