Scholarlink

<p>This study assesses the effect of research and development expenditure on the financial sustainability of companies listed on the Standard and Poor 500 listed firms. The panel data of 231 companies from 2015 to 2022 are analysed using the fixed effects approach. Further evidence is also provided using the generalised method of moments framework. The results support signalling theory, suggesting that research and development expenditure may enhance a firm’s reputation and help it to gain a competitive advantage, resulting in greater profitability and consistent value creation. This finding implies that companies can achieve sustainable performance by investing in research and development. Policymakers and regulators should provide incentives to companies to pay more attention to research and development investments. Such investments may promote innovation, enhance the competitive advantage, and boost the revenue generation of companies, thus enabling sustainable performance.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Effect of research and development expenditure on the financial sustainability of Standard and Poor listed firms

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年8月7日

查看全文
  • Hamid Ghazi H Sulimany

摘要

This study assesses the effect of research and development expenditure on the financial sustainability of companies listed on the Standard and Poor 500 listed firms. The panel data of 231 companies from 2015 to 2022 are analysed using the fixed effects approach. Further evidence is also provided using the generalised method of moments framework. The results support signalling theory, suggesting that research and development expenditure may enhance a firm’s reputation and help it to gain a competitive advantage, resulting in greater profitability and consistent value creation. This finding implies that companies can achieve sustainable performance by investing in research and development. Policymakers and regulators should provide incentives to companies to pay more attention to research and development investments. Such investments may promote innovation, enhance the competitive advantage, and boost the revenue generation of companies, thus enabling sustainable performance.