Innovation, Industry Specialization, and Shareholder Wealth

R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model

“…Spending on R&D is widely viewed as a form of investment in intangible assets with predictably positive effects on future cash flow, and as such, it is a way to create growth options (Gartrell, 1990;Chauvin and Hirschey, 1993;Martı´nez-Zarzoso and Sua´rez-Burguet, 2000). Not only that, R&D is typically considered critical for a firm to sustain its competitive advantage.…”

Do large firms benefit more from R&D investment?

“…The empirical literature is replete with a sizable number of empirical studies on the relationship between R&D and firm performance but, so far, the available evidence and results are mixed, and largely inconclusive. R&D expenditure is generally considered as investments that have the potential to bring in returns in the future (Gartrell, 1990;Chauvin and Hirschey, 1993;Martınez-Zarzoso and Suarez-Burguet, 2000). Furthermore, such investments are expected to help firms maintain a competitive edge in their line of business.…”

Diversification and R&D Intensity: An Empirical Analysis of Chinese Listed Companies

“…We controlled for level of debt, organization size and industry. High debt levels may be inversely related to R&D spending because of financial institutions' propensity for risk-aversion [2]. This control was operationalized by the ratio of debt to assets.…”

“…This article investigates the influence of product diversification strategy on R&D investment. This relationship is a critical issue because the coordinated use of R&D and diversification is likely to contribute to an economically efficient corporate strategy if it allows firms to adapt to changing social, technical, and economic conditions [2].…”