 Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?Muhammad Arif Khan, Meng Bin, Chunlin Wang, Hazrat Bilal, Arshad Ali Khan, Irfan Ullah, Amjad Iqbal and Mohib Ur Rahman SAGE Open, 2023, vol. 13, issue 4, 21582440231199560 Abstract: This study investigates how R&D affects firm performance and examines whether and how state ownership moderates the R&D–firm performance nexus. Moreover, this study investigates whether and how product market competition moderates the association between R&D and performance across the different natures of firms. Employing a sample of Chinese listed firms from 2000 to 2020, the study performs estimations by applying pooled ordinary least squares regressions, fixed-effect panel regressions, and a two-step system GMM model to account for endogeneity problems. The findings reveal that firm performance reduces as R&D expenses rise, with the impact being less pronounced for state-owned enterprises. The adverse impact of R&D on corporate performance is also alleviated under intense competition. The results have important implications for policymakers, investors, and corporations seeking to understand how R&D spending influences corporate performance in competitive industries. JEL classification: L25, G32, O3 Keywords: firm performance; R&D investment; competition; SOEs; China (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:sae:sagope:v:13:y:2023:i:4:p:21582440231199560 DOI: 10.1177/21582440231199560 Access Statistics for this article More articles in SAGE Open |
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