Unraveling the impact of R&D investment on corporate growth: Empirical insights on intensity- and growth rate-based differences

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Autorschaft

  • Drini Morina
  • Henning Lucas
  • Stefanie Heiden
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Details

OriginalspracheEnglisch
Aufsatznummer106722
FachzeitschriftFinance research letters
Jahrgang74
Frühes Online-Datum30 Dez. 2024
PublikationsstatusElektronisch veröffentlicht (E-Pub) - 30 Dez. 2024

Abstract

This paper examines intensity- and speed-based differences in the short-term relationship between R&D investment and corporate growth of over 2,000 high-tech firms from 2000 to 2020 using semiparametric quantile models. Although R&D investment is often assumed to be a candidate supporting the recovery of declining firms, a positive impact has yet only been revealed for high-growth firms. This study finds that this effect is only positive at high intensities, roughly above a 50 % R&D-to-sales ratio, and that the threshold is higher for declining firms, at about 130 %. These findings contribute to the understanding of the relationship and are valuable for managers as they consider R&D investments to enhance corporate growth.

ASJC Scopus Sachgebiete

  • Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
  • Finanzwesen

Ziele für nachhaltige Entwicklung

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Unraveling the impact of R&D investment on corporate growth: Empirical insights on intensity- and growth rate-based differences. / Morina, Drini; Lucas, Henning; Heiden, Stefanie.
in: Finance research letters, Jahrgang 74, 106722, 03.2025.

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Morina D, Lucas H, Heiden S. Unraveling the impact of R&D investment on corporate growth: Empirical insights on intensity- and growth rate-based differences. Finance research letters. 2025 Mär;74:106722. Epub 2024 Dez 30. doi: 10.1016/j.frl.2024.106722
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