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

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  • Kruglov, Panteleimon

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.

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  • Kruglov, Panteleimon, 2024. "Financial Performance and Innovation: Evidence from United States 1998 - 2023," MPRA Paper 120404, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120404
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; Financial Crises; financial valuation;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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