 Short- and long-run effects of internationalization and R&D intensity on firm performanceChaiporn Vithessonthi () and Olimpia C. Racela Journal of Multinational Financial Management, 2016, vol. 34, issue C, 28-45 Abstract: Investing in building new knowledge and capability is likely to benefit a firm in the long run but has a negative effect on the firm’s short-term performance. Firms that exploit their knowledge base across foreign markets better than their competitors should have superior firm performance. Using a dataset that covers all non-financial firms listed on US stock exchanges during the period 1990–2013, we show that the level of R&D intensity is negatively associated with operating performance and is positively correlated with firm value. The negative effect of R&D intensity on ROS is evident for high R&D firms and is not evident for low R&D firms. The level of internationalization has no effect on ROA, a positive effect on ROS, and a negative effect on both stock returns and Tobin’s Q. Furthermore, we document some evidence for the moderating effect of internationalization on the relationship between R&D intensity and firm performance. Keywords: Internationalization; R&D intensity; Firm performance; Firm value (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:34:y:2016:i:c:p:28-45 DOI: 10.1016/j.mulfin.2015.12.001 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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