C. Catherine Chiang, assistant professor of accounting in the Love School of Business, recently published an article, “Product Diversification in Competitive R&D-Intensive Firms: An Empirical Study of the Computer Software Industry,” in the January/February 2010 issue of Journal of Applied Business Research.
The study finds that R&D-intensive firms that diversify into different product categories achieve higher returns on equity, attain a larger market share and enjoy higher excess market returns than firms that confine development to a single product category. However, these realized higher values do not derive from more efficient use of assets. Rather, they stem from higher efficiency in innovation.
Journal of Applied Business Research publishes high-quality, peer-reviewed articles in all areas of business and economics.