Analysis of the Relationship between R&D and Company Performance

Nadine Weber

Diplomová práce

Anotace:

Research and development (R&D) activities are crucial to remain competitive. Extant literature presents divergent views on R&D’s contribution to company performance, specifically profitability and hints at cultural differences in approaching R&D led to analyze such relationship within a regional comparison between Europe and Asia. Filling the research gap focusing on the Technology, Media and Telecommunication (TMT) sector, the study evaluated a sample of 132 Asian and European companies operating in the TMT sector for the 2018 – 2022 period. Using panel generalized method of moments (P-GMM), results showed R&D intensity had a positive but statistically insignificant impact on profitability, but a positive and significant effect on capital market performance. Notably, Asian firms' R&D intensity had a more pronounced impact on performance, supporting literature’s view on cultural differences in R&D strategies.

Abstract:

Research and development (R&D) activities are crucial to remain competitive. Extant literature presents divergent views on R&D’s contribution to company performance, specifically profitability and hints at cultural differences in approaching R&D led to analyze such relationship within a regional comparison between Europe and Asia. Filling the research gap focusing on the Technology, Media and Telecommunication (TMT) sector, the study evaluated a sample of 132 Asian and European companies operating in the TMT sector for the 2018 – 2022 period. Using panel generalized method of moments (P-GMM), results showed R&D intensity had a positive but statistically insignificant impact on profitability, but a positive and significant effect on capital market performance. Notably, Asian firms' R&D intensity had a more pronounced impact on performance, supporting literature’s view on cultural differences in R&D strategies.

Klíčová slova

Research and Development, Profitability, Capital Market Performance, Panel Generalized Methods of Moments, TMT Sector

Keywords

Research and Development, Profitability, Capital Market Performance, TMT Sector, Panel Generalized Methods of Moments

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 24. 8. 2023

Obhajoba závěrečné práce

• Obhajoba proběhla 5. 10. 2023
• Vedoucí: Ladislav Tyll
• Oponent: Ivan Balogh

Vysoká škola ekonomická v Praze

Magisterský studijní program:
International Management