| Περίληψη: | This research is going to investigate how stock prices and volatility are affected by R&D expenditures for R&D intensive firms in US during the period 2012 to 2018. The objective is to see whether stock prices fully reflect the value of R&D investments and whether there is any association between R&D and return volatility. Since intangible assets are not reported on financial statements under current U.S. accounting standards and R&D spending is expensed, the valuation problem may be especially challenging. Through panel data analysis , the role of R&D assets is considered along with other fundamental factors, such as size and book to market ratio. We provide evidence that there is a positive significant effect of R&D capital to sales on stock returns, a negative significant effect of R&D to market value on stock returns and a positive significant effect of R&D capital to sales on stock return volatility.
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