Article
Version 1
Preserved in Portico This version is not peer-reviewed
The Impact of R&D Investment on the Performance of Portuguese Companies
Version 1
: Received: 21 June 2024 / Approved: 22 June 2024 / Online: 24 June 2024 (10:58:55 CEST)
How to cite: Santos, A.; Bandeira, A.; Ramos, P. The Impact of R&D Investment on the Performance of Portuguese Companies. Preprints 2024, 2024061565. https://doi.org/10.20944/preprints202406.1565.v1 Santos, A.; Bandeira, A.; Ramos, P. The Impact of R&D Investment on the Performance of Portuguese Companies. Preprints 2024, 2024061565. https://doi.org/10.20944/preprints202406.1565.v1
Abstract
The main objective of this study is to analyze the impact of investment in Research & Development on the performance and value of companies, that is, to try to explain how R&D investment influences the companies’ performance. For this purpose, a dynamic panel data model was estimated using the Generalized Method of Moments, which made possible to measure the impact of R&D investment on performance through the Return on Operating Assets ratio for the Portuguese companies that invested the most between 2012 to 2019. The results show that the investment in R&D is not statistically significant in explaining the operating return on assets. However, the lagged financial performance in one period, the leverage, the asset turnover ratio and the accounts payable turnover show to have impact on the variable under study.
Keywords
Intangible Assets; Investment; R&D; Financial Performance; Generalized Method of Moments
Subject
Business, Economics and Management, Econometrics and Statistics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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