The Moderating Role of Employee Skill on the Relationship between R&D Intensity and Firm Performance
(2023) BUSN79 20231Department of Business Administration
- Abstract
- This paper investigates the moderating effect of employee skill, as measured by employee productivity and training, on the relationship between R&D spending, measured as R&D intensity, and firm performance, measured as ROA, for the accounting-based standard, and market capitalization, for the market-based standard. The study employs a hierarchical Pooled OLS logistic regression and a Fixed Effects regression model, to account for the structure of the panel data. It investigates a sample of firms on the S&P 1500 Composite Index, excluding non-financial firms. The investigation reveals a positive relationship between R&D Intensity and Market Capitalization and a negative relationship between R&D Intensity and ROA. While finding a positive... (More)
- This paper investigates the moderating effect of employee skill, as measured by employee productivity and training, on the relationship between R&D spending, measured as R&D intensity, and firm performance, measured as ROA, for the accounting-based standard, and market capitalization, for the market-based standard. The study employs a hierarchical Pooled OLS logistic regression and a Fixed Effects regression model, to account for the structure of the panel data. It investigates a sample of firms on the S&P 1500 Composite Index, excluding non-financial firms. The investigation reveals a positive relationship between R&D Intensity and Market Capitalization and a negative relationship between R&D Intensity and ROA. While finding a positive moderating effect on both Employee Productivity and Training. However, when employing the Fixed Effects model, the relationship between R&D Intensity and Market Capitalization is found to be insignificant, as is the moderating effect of Employee Productivity, when using Market Capitalization as a dependent variable. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9120199
- author
- Sharma, Devansh LU and Ishan Asiri Kumara, Wanni Arachchige LU
- supervisor
- organization
- course
- BUSN79 20231
- year
- 2023
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Research & Development, Return on Assets, Market Capitalization, Employee Training, Employee Productivity
- language
- English
- id
- 9120199
- date added to LUP
- 2023-09-12 16:06:59
- date last changed
- 2023-09-12 16:06:59
@misc{9120199, abstract = {{This paper investigates the moderating effect of employee skill, as measured by employee productivity and training, on the relationship between R&D spending, measured as R&D intensity, and firm performance, measured as ROA, for the accounting-based standard, and market capitalization, for the market-based standard. The study employs a hierarchical Pooled OLS logistic regression and a Fixed Effects regression model, to account for the structure of the panel data. It investigates a sample of firms on the S&P 1500 Composite Index, excluding non-financial firms. The investigation reveals a positive relationship between R&D Intensity and Market Capitalization and a negative relationship between R&D Intensity and ROA. While finding a positive moderating effect on both Employee Productivity and Training. However, when employing the Fixed Effects model, the relationship between R&D Intensity and Market Capitalization is found to be insignificant, as is the moderating effect of Employee Productivity, when using Market Capitalization as a dependent variable.}}, author = {{Sharma, Devansh and Ishan Asiri Kumara, Wanni Arachchige}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Moderating Role of Employee Skill on the Relationship between R&D Intensity and Firm Performance}}, year = {{2023}}, }