Financial Performance and Innovation: Evidence from United States 1998 - 2023

Panteleimon Kruglov

MPRA Paper from University Library of Munich, Germany

Abstract: This study explores the relationship between R&D intensity, as a measure of innovation, and financial performance among S&P 500 companies over 100 quarters from 1998 to 2023, including multiple crisis periods. It challenges the conventional wisdom that larger companies are more prone to innovate, using a comprehensive dataset across various industries. The analysis reveals diverse associations between innovation and key financial indicators such as firm size, assets, EBITDA, and tangibility. Our findings underscore the importance of innovation in enhancing firm competitiveness and market positioning, highlighting the effectiveness of countercyclical innovation policies. This research contributes to the debate on the role of R&D investments in driving firm value, offering new insights for both academic and policy discussions.

Keywords: Innovation; Financial Crises; financial valuation (search for similar items in EconPapers)
JEL-codes: E44 O33 (search for similar items in EconPapers)
Date: 2024-03-07
New Economics Papers: this item is included in nep-cse, nep-sbm and nep-tid
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:120404

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