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The Moderating Role of Employee Skill on the Relationship between R&D Intensity and Firm Performance

Sharma, Devansh LU and Ishan Asiri Kumara, Wanni Arachchige LU (2023) BUSN79 20231
Department 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)
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author
Sharma, Devansh LU and Ishan Asiri Kumara, Wanni Arachchige LU
supervisor
organization
course
BUSN79 20231
year
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}},
}