Chiao, Chaoshin; Hung, Weifeng; Lee, Cheng F. - In: Emerging Markets Finance and Trade 44 (2008) 1, pp. 95-116
This paper documents prevailing mispricing of research and development (R&D) investments in the Taiwan stock market, a rapidly emerging and electronics-dominated market. Applying stock return data from July 1988 to June 2005, we observe that R&D-intensive stocks tend to outperform stocks with...