Short- and long-run effects of internationalization and R&amp;D intensity on firm performance

Vithessonthi, Chaiporn; Racela, Olimpia C.

doi:10.1016/j.mulfin.2015.12.001

Cited by 105 publications

(94 citation statements)

References 48 publications

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“…However, Vithessonthi and Racela (2016) highlight that the intensity of R&D is negatively associated with operating performance and is positively correlated with short-run firm value. Interestingly, Chen and Lin (2012) confirm a nonlinear relationship between R&D investment and performance.…”

Section: Randd Investment Improve Future Performancementioning

confidence: 86%

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

et al. 2020

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We investigate the relationship among managerial overconfidence (MO), government ownership, and research and development (R&D) investment using data from Vietnamese public companies for the period 2007–2016. We also investigate how R&D investment, given MO and government ownership, affect future firm performance. Our results indicate that MO and government ownership are positively related to R&D investment. Conceptually, this study investigates novel factors affecting of R&D investment and their role in improving firm performance. Overall, this study emphasizes the importance of R&D investment in the corporate world, improving firm performance and, ultimately, economic prosperity.

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Section: Randd Investment Improve Future Performancementioning

confidence: 86%

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

et al. 2020

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“…Studies indicating the absence of positive effects of R&D intensity Lin, Lee, and Hung (2006) study on the patents and financial information of 258 American firms revealed no apparent correlation between R&D and company performance. Vithessonthi and Racela (2016) studied non-financial companies listed on the U.S. stock market for the period 1990-2013. They found that R&D investment contributes towards the building of new knowledge and capabilities in the long run, creating a greater knowledge base than that of their competitors, and thus exhibiting superior performance.…”

Section: Correlation Between Randd Input and Business Performancementioning

confidence: 99%

“…R.O.A. is often used to measure business performance, innovation performance and business profitability (Choi, 2008;Gentry & Shen, 2013;Vithessonthi & Racela, 2016).…”

Section: Model Variablesmentioning

confidence: 99%

Effects of R&D intensity on firm performance in Taiwan’s semiconductor industry

Chen

Dong-qiang

Chen

et al. 2019

Economic Research-Ekonomska Istraživanja

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This study examined the impact of research and development (R&D) investment behaviour on the corporate performance of the Taiwanese semiconductor industry, which faced the economic downturn caused by the global financial crisis of 2008, for the period 2005-2016. A dynamic panel data model was used to empirically analyse the impact of R&D intensity on business performance. A generalised method of moments estimator was adopted to avoid endogeneity problems caused by adding dynamics to the model. Further, the model was used to explore the impact of the lag effect of R&D investments on business performance. It was found that significant R&D investments in a given period may reduce business performance in the same period and continue to influence it in the next few periods, thus indicating the presence of a positive and lagged effect of R&D investments in the high-tech industry. Firm size was also found to be positively correlated with business performance, that is, the larger the firm size, the greater is the use of resources for R&D, which, in turn, leads to more sophisticated technologies and profitable outcomes, forming a positive cycle. This indicates that R&D expenditures affect firms' sustainable management. ARTICLE HISTORY

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“…Nevertheless, Vithessonthi and Racela [36] explain why the impact of R&D expenditures on corporate performance is negative in the short run and positive in the long run through the application of net present value. Namely, R&D investment is often considered as a long-term investment in different R&D projects that are usually estimated to have a positive net present value.…”

Section: Randd Expenditures and Market Performancementioning

confidence: 99%

The Impact of R&D Expenditures on Corporate Performance: Evidence from Slovenian and World R&D Companies

Ravšelj

Aristovnik

2020

Sustainability

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Research and development (R&D) investment is widely recognised as one of the crucial elements of generating the competitive advantage of contemporary companies. At the same time, it is also considered to represent one of the key determinants of overall sustainable development. Global competition, which is becoming increasingly harsh and forces companies to provide value-added products, processes and services, constitutes a reason why R&D investment is indispensable in contemporary business operations as they facilitate keeping the companies’ position in the market in terms of their competitiveness. The main aim of this paper is therefore to examine the impact of R&D expenditures on corporate performance. Using a multiple regression analysis, two different panel datasets covering Slovenian and world R&D companies are analysed. This gives a unique opportunity to obtain comprehensive and interesting findings, representing the main originality and value of the paper. The empirical results reveal that R&D expenditures are not effective in the short-term period and bring certain benefits in the long-term period. The findings of this paper provide several important theoretical and practical implications.

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Short- and long-run effects of internationalization and R&D intensity on firm performance

Cited by 105 publications

References 48 publications

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

R&D investment and future firm performance: The role of managerial overconfidence and government ownership

Effects of R&D intensity on firm performance in Taiwan’s semiconductor industry

The Impact of R&D Expenditures on Corporate Performance: Evidence from Slovenian and World R&D Companies

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