... and joint effects of R&D intensity and CAPEX intensity on market value, profitability and competitive position. Additional analyses assess robustness across alternative specifications. Findings The results show a differentiated pattern across outcome domains. R&D intensity is positively...

...Dmitri G. Markovitch; Jonathan O'Brien Purpose Research finds that investors initially under-react to increases in R&D intensity. The phenomenon is commonly viewed as mispricing. We draw on behavioral theory of the firm (BTF) to propose an alternative explanation that increased R&D...

...-effects panel data models serve as an estimation technique. Findings The research supports an inverted U-shape relationship between performance feedback and research and development (R&D) intensity for firms below their aspiration levels, and a U-shape relationship for firms above their aspiration...