Value relevance of R&D and FCF across different life cycle stages
| Variables | VR stagnant | VR mature | VR growth | VR effect stagnant | VR effect mature | VR effect growth |
|---|---|---|---|---|---|---|
| EPS | 9.569*** (0.441) | 7.272*** (0.243) | 4.867*** (0.334) | 10.00*** (0.462) | 7.159*** (0.259) | 4.755*** (0.346) |
| BPS | 0.967*** (0.0777) | 0.873*** (0.0554) | 1.211*** (0.0980) | 0.961*** (0.0809) | 0.929*** (0.0622) | 1.195*** (0.106) |
| FCF-IE | 4.365*** (1.118) | 2.359*** (0.603) | 1.452 (1.091) | 2.093 (1.450) | −0.889 (1.132) | 2.501 (2.078) |
| R&D-IE | 124.2*** (43.91) | 89.33*** (18.21) | 54.99** (21.93) | −84.01 (80.61) | 5.468 (35.94) | −2.347 (51.75) |
| BPS × R&D-IE | 29.52 (19.85) | 19.09* (9.806) | −4.879 (10.66) | |||
| BPS× FCF-IE | 0.191 (0.398) | 0.790*** (0.304) | −0.103 (0.415) | |||
| EPS × R&D-IE | 129.6 (158.6) | 62.50 (59.01) | 354.0*** (94.97) | |||
| EPS × FCF-IE | 14.71*** (3.162) | 0.838 (1.391) | 2.189*** (2.578) | |||
| Constant | 7.526*** (1.289) | 7.522*** (0.989) | 5.088** (2.047) | 7.390*** (1.284) | 7.227*** (0.991) | 5.260** (2.052) |
| F-stats | 101.71 | 166.38 | 44.99 | 113.47 | 188.64 | 50.78 |
| R2 | 0.379 | 0.464 | 0.399 | 0.385 | 0.466 | 0.404 |
| Variables | VR stagnant | VR mature | VR growth | VR effect stagnant | VR effect mature | VR effect growth |
|---|---|---|---|---|---|---|
| EPS | 9.569*** (0.441) | 7.272*** (0.243) | 4.867*** (0.334) | 10.00*** (0.462) | 7.159*** (0.259) | 4.755*** (0.346) |
| BPS | 0.967*** (0.0777) | 0.873*** (0.0554) | 1.211*** (0.0980) | 0.961*** (0.0809) | 0.929*** (0.0622) | 1.195*** (0.106) |
| FCF-IE | 4.365*** (1.118) | 2.359*** (0.603) | 1.452 (1.091) | 2.093 (1.450) | −0.889 (1.132) | 2.501 (2.078) |
| R&D-IE | 124.2*** (43.91) | 89.33*** (18.21) | 54.99** (21.93) | −84.01 (80.61) | 5.468 (35.94) | −2.347 (51.75) |
| BPS × R&D-IE | 29.52 (19.85) | 19.09* (9.806) | −4.879 (10.66) | |||
| BPS× FCF-IE | 0.191 (0.398) | 0.790*** (0.304) | −0.103 (0.415) | |||
| EPS × R&D-IE | 129.6 (158.6) | 62.50 (59.01) | 354.0*** (94.97) | |||
| EPS × FCF-IE | 14.71*** (3.162) | 0.838 (1.391) | 2.189*** (2.578) | |||
| Constant | 7.526*** (1.289) | 7.522*** (0.989) | 5.088** (2.047) | 7.390*** (1.284) | 7.227*** (0.991) | 5.260** (2.052) |
| 101.71 | 166.38 | 44.99 | 113.47 | 188.64 | 50.78 | |
| 0.379 | 0.464 | 0.399 | 0.385 | 0.466 | 0.404 |
Notes: Standard errors in parentheses. *p<0.1; **p<0.05; ***p<0.01
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