Value relevance of R&D and FCF and effect of product market competition
| Variables | Concentrated market | Competitive market | Concentrated market | Competitive market |
|---|---|---|---|---|
| EPS | 3.740*** (0.345) | 8.836*** (0.223) | 3.503*** (0.358) | 8.992*** (0.234) |
| BPS | 0.978*** (0.0750) | 1.057*** (0.0486) | 1.067*** (0.0810) | 1.028*** (0.0520) |
| FCF-IE | 4.601*** (0.964) | 2.924*** (0.577) | 0.515 (1.524) | 1.844* (0.955) |
| R&D-IE | −4.332 (33.28) | 88.57*** (15.47) | −296.9*** (98.59) | 0.748 (28.85) |
| BPS × R&D-IE | 30.58* (16.03) | 18.99** (8.115) | ||
| BPS× FCF-IE | 1.302*** (0.379) | −0.0335 (0.244) | ||
| EPS × R&D-IE | 581.8*** (173.0) | 55.62 (53.76) | ||
| EPS× FCF-IE | −3.617 (2.165) | 5.530*** (1.425) | ||
| Constant | 8.341*** (0.961) | 5.714*** (0.401) | 8.099*** (0.965) | 5.747*** (0.406) |
| F-stats | 90.01 | 622.6 | 79.63 | 470.93 |
| R2 | 0.327 | 0.470 | 0.331 | 0.472 |
| Variables | Concentrated market | Competitive market | Concentrated market | Competitive market |
|---|---|---|---|---|
| EPS | 3.740*** (0.345) | 8.836*** (0.223) | 3.503*** (0.358) | 8.992*** (0.234) |
| BPS | 0.978*** (0.0750) | 1.057*** (0.0486) | 1.067*** (0.0810) | 1.028*** (0.0520) |
| FCF-IE | 4.601*** (0.964) | 2.924*** (0.577) | 0.515 (1.524) | 1.844* (0.955) |
| R&D-IE | −4.332 (33.28) | 88.57*** (15.47) | −296.9*** (98.59) | 0.748 (28.85) |
| BPS × R&D-IE | 30.58* (16.03) | 18.99** (8.115) | ||
| BPS× FCF-IE | 1.302*** (0.379) | −0.0335 (0.244) | ||
| EPS × R&D-IE | 581.8*** (173.0) | 55.62 (53.76) | ||
| EPS× FCF-IE | −3.617 (2.165) | 5.530*** (1.425) | ||
| Constant | 8.341*** (0.961) | 5.714*** (0.401) | 8.099*** (0.965) | 5.747*** (0.406) |
| 90.01 | 622.6 | 79.63 | 470.93 | |
| 0.327 | 0.470 | 0.331 | 0.472 |
Notes: Standard errors in parentheses. *p<0.1; **p<0.05; ***p<0.01
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