University of Twente Student Theses
R&D Spending and Financial Performance : The moderation of engagement in Key Technologies
Koopmans, G.B.K. (2025) R&D Spending and Financial Performance : The moderation of engagement in Key Technologies.
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| Abstract: | This study examines the relationship between Research and Development intensity and firm financial performance, with a specific focus on how engagement in key technologies moderates this relationship. Using a panel dataset of 45 firms listed on the Dutch stock exchange from 2018 to 2023, the research employs regression analyses to assess both current and lagged effects of R&D investment on return on assets and earnings per share. The findings suggest that while R&D intensity negatively impacts financial performance, engagement in key technologies moderates this effect. The engagement in key technologies and its extent are seen to mitigate the negative impact on operational performance as measured by ROA. However, no significant moderation effect is found for the operational performance as measured by EPS which is said to be due to this variable not being focused solely on operating performance but incorporating some market factors. These results contribute to the debate on the financial implications of R&D investment on firm performance and provide insights for policymakers and business leaders aiming to strengthen technological competitiveness and optimize the position the business is in. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/106105 |
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