Emerald Publishing

Table 19

The moderating effect of R&D intensity

	Return on assets			Return on equity			CAR
	ROA_i,t+1	ROA_i,t+2	ROA_i,t+3	ROE_i,t+1	ROE_i,t+2	ROE_i,t+3	CAR (−2,2)	CAR (−1,1)
OTC_i,t× RDint_i,t	−0.031	0.062	0.172	−0.158	0.165	0.236	−0.081	0.005
OTC_i,t× RDint_i,t	(−0.33)	(0.48)	(1.02)	(−1.00)	(0.76)	(0.83)	(−0.73)	(0.05)
RDC_i,t× RDint_i,t	−0.199^***	−0.151^**	−0.164	−0.366^***	−0.308^**	−0.120	0.154^**	0.082
RDC_i,t× RDint_i,t	(−3.96)	(−1.98)	(−1.52)	(−3.98)	(−2.30)	(−0.61)	(2.35)	(1.56)
OTC_i,t	−0.004^*	−0.008^*	−0.015^***	−0.006	−0.017^**	−0.030^***	0.003	−0.000
OTC_i,t	(−1.69)	(−1.95)	(−2.82)	(−1.12)	(−2.18)	(−2.85)	(0.75)	(−0.16)
RDC_i,t	−0.002	−0.004^*	−0.001	−0.005^*	−0.007^*	−0.008	−0.001	0.001
RDC_i,t	(−1.55)	(−1.72)	(−0.45)	(−1.65)	(−1.83)	(−1.43)	(−0.63)	(0.36)
UE_i,t							0.001^**	0.001^***
UE_i,t							(1.97)	(2.83)
ROA_i,t	0.557^***	0.464^***	0.397^***
ROA_i,t	(33.68)	(21.85)	(14.67)
ROE_i,t				0.496^***	0.370^***	0.319^***	0.042^***	0.022^***
ROE_i,t				(32.01)	(16.68)	(12.05)	(4.70)	(2.93)
Size_i,t	0.006^***	0.006^***	0.005^***	0.013^***	0.013^***	0.012^***	0.004^***	0.003^***
Size_i,t	(11.55)	(6.49)	(4.13)	(12.63)	(8.08)	(5.58)	(5.65)	(5.75)
Lev_i,t	−0.033^***	−0.033^***	−0.027^***	−0.008	0.002	0.016	−0.007^**	−0.005
Lev_i,t	(−11.41)	(−7.50)	(−4.62)	(−1.63)	(0.27)	(1.56)	(−2.10)	(−1.59)
MB_i,t	0.012^***	0.008^***	0.005^**	0.023^***	0.019^***	0.012^***	0.005^***	0.005^***
MB_i,t	(11.61)	(4.97)	(2.32)	(12.00)	(5.98)	(2.98)	(4.18)	(4.57)
Growth_i,t	0.008^***	−0.006^*	−0.018^***	0.021^***	−0.001	−0.026^***	−0.000	−0.001
Growth_i,t	(3.72)	(−1.77)	(−4.38)	(5.33)	(−0.24)	(−3.54)	(−0.11)	(−0.46)
RDint_i,t	0.589^***	0.642^***	0.683^***	1.212^***	1.425^***	1.295^***	−0.145^***	−0.094^**
RDint_i,t	(13.51)	(10.15)	(7.82)	(15.93)	(12.62)	(8.46)	(−2.76)	(−2.12)
Constant	−0.107^***	−0.057^**	−0.075^***	−0.251^***	−0.216^***	−0.220^***	−0.103^***	−0.085^***
Constant	(−7.44)	(−2.56)	(−2.67)	(−9.93)	(−6.07)	(−3.87)	(−5.76)	(−5.88)
Fixed Effects
Industry	YES	YES	YES	YES	YES	YES	YES	YES
Year	YES	YES	YES	YES	YES	YES	YES	YES
# of Obs.	11,110	8,224	5,899	11,110	8,194	5,868	10,873	10,873
Adj. R²	0.510	0.346	0.252	0.416	0.260	0.189	0.027	0.020

	Return on assets			Return on equity			CAR
	ROA_i,t+1	ROA_i,t+2	ROA_i,t+3	ROE_i,t+1	ROE_i,t+2	ROE_i,t+3	CAR (−2,2)	CAR (−1,1)
OTC_i,t× RDint_i,t	−0.031	0.062	0.172	−0.158	0.165	0.236	−0.081	0.005
OTC_i,t× RDint_i,t	(−0.33)	(0.48)	(1.02)	(−1.00)	(0.76)	(0.83)	(−0.73)	(0.05)
RDC_i,t× RDint_i,t	−0.199^***	−0.151^**	−0.164	−0.366^***	−0.308^**	−0.120	0.154^**	0.082
RDC_i,t× RDint_i,t	(−3.96)	(−1.98)	(−1.52)	(−3.98)	(−2.30)	(−0.61)	(2.35)	(1.56)
OTC_i,t	−0.004^*	−0.008^*	−0.015^***	−0.006	−0.017^**	−0.030^***	0.003	−0.000
OTC_i,t	(−1.69)	(−1.95)	(−2.82)	(−1.12)	(−2.18)	(−2.85)	(0.75)	(−0.16)
RDC_i,t	−0.002	−0.004^*	−0.001	−0.005^*	−0.007^*	−0.008	−0.001	0.001
RDC_i,t	(−1.55)	(−1.72)	(−0.45)	(−1.65)	(−1.83)	(−1.43)	(−0.63)	(0.36)
UE_i,t							0.001^**	0.001^***
UE_i,t							(1.97)	(2.83)
ROA_i,t	0.557^***	0.464^***	0.397^***
ROA_i,t	(33.68)	(21.85)	(14.67)
ROE_i,t				0.496^***	0.370^***	0.319^***	0.042^***	0.022^***
ROE_i,t				(32.01)	(16.68)	(12.05)	(4.70)	(2.93)
Size_i,t	0.006^***	0.006^***	0.005^***	0.013^***	0.013^***	0.012^***	0.004^***	0.003^***
Size_i,t	(11.55)	(6.49)	(4.13)	(12.63)	(8.08)	(5.58)	(5.65)	(5.75)
Lev_i,t	−0.033^***	−0.033^***	−0.027^***	−0.008	0.002	0.016	−0.007^**	−0.005
Lev_i,t	(−11.41)	(−7.50)	(−4.62)	(−1.63)	(0.27)	(1.56)	(−2.10)	(−1.59)
MB_i,t	0.012^***	0.008^***	0.005^**	0.023^***	0.019^***	0.012^***	0.005^***	0.005^***
MB_i,t	(11.61)	(4.97)	(2.32)	(12.00)	(5.98)	(2.98)	(4.18)	(4.57)
Growth_i,t	0.008^***	−0.006^*	−0.018^***	0.021^***	−0.001	−0.026^***	−0.000	−0.001
Growth_i,t	(3.72)	(−1.77)	(−4.38)	(5.33)	(−0.24)	(−3.54)	(−0.11)	(−0.46)
RDint_i,t	0.589^***	0.642^***	0.683^***	1.212^***	1.425^***	1.295^***	−0.145^***	−0.094^**
RDint_i,t	(13.51)	(10.15)	(7.82)	(15.93)	(12.62)	(8.46)	(−2.76)	(−2.12)
Constant	−0.107^***	−0.057^**	−0.075^***	−0.251^***	−0.216^***	−0.220^***	−0.103^***	−0.085^***
Constant	(−7.44)	(−2.56)	(−2.67)	(−9.93)	(−6.07)	(−3.87)	(−5.76)	(−5.88)
Fixed Effects
Industry	YES	YES	YES	YES	YES	YES	YES	YES
Year	YES	YES	YES	YES	YES	YES	YES	YES
# of Obs.	11,110	8,224	5,899	11,110	8,194	5,868	10,873	10,873
Adj. R²	0.510	0.346	0.252	0.416	0.260	0.189	0.027	0.020

Note(s): All variables are defined in Appendix. The robust t statistics shown in parentheses are based on the firm-clustered standard errors. ^*, ^** and ^*** represent the statistical significance level of 10%, 5% and 1%, respectively

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