The relationship between the creation of value and investment in r & d: An approach employing artificial neural networks

Ángel Samaniego Alcántar, Samuel Mongrut

Research output: Contribution to journalArticle in a journalpeer-review

1 Scopus citations

Abstract

This paper provides new evidence concerning the interactions between the effects of five year interest rates, leverage levels (the relationship between assets and liabilities), historical losses, Gross National Product (GNP) growth, levels of investment in Research and Development (R&D), income and short-term share returns. The research was carried out using a non-linear model in which neural networks were used to combine different models. The model predicted 31.59% of variation in the returns on shares traded in the AMEX, NASDAQ and NYSE markets during the first five months of all years between 2000 and 2006. The literature suggests that a 32% level of explanation is at the high end, Coad's (2009) literature review of models used to explain company growth finding that linear models explained between 17 and 32% of variability. Like Bode (1998), Tsai (2005), Wang & Chien (2006) and Chien, Wang & Lin (2010) this paper uses artificial neural networks to examine the interaction between R&D and company performance.
Translated title of the contributionRelación entre la creación de valor y la inversión en i+d: Una aproximación mediante redes neuronales artificiales
Original languageEnglish
Pages (from-to)19-29
Number of pages11
JournalInnovar
Volume24
Issue number51
DOIs
StatePublished - 1 Jan 2014

Keywords

  • Artificial neural networks
  • Economic growth
  • Investment in R&D

Fingerprint

Dive into the research topics of 'The relationship between the creation of value and investment in r & d: An approach employing artificial neural networks'. Together they form a unique fingerprint.

Cite this