R&amp;D and performance persistence: Evidence from the United Kingdom

Anagnostopoulou, Seraina C.; Levis, Mario

doi:10.1016/j.intacc.2008.06.004

Cited by 57 publications

(47 citation statements)

References 14 publications

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“…In general, firms that invest heavily in R&D investments are more likely to be profitable and successful. There is strong empirical evidence from the US (Ciftsi and Cready, 2011;Sougiannis, 1994), UK (Anagnostopoulou and Levis, 2008) and EU markets (Cazavan-Jeny et al, 2011) that R&D intensity is positively related to the future level of operating performance. Also, these studies take into account possible interactions of R&D with firm size, technological intensity level of the industry and the life cycle of firm.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…So, firms increasingly look to develop an innovation activity that will differentiate them from other firms (Lev, 2001). R&D investment in intangible assets may contribute to the value added (Tsang et al, 2008) and the long-term sales growth (Anagnostopoulou and Levis, 2008;Bae and Noh, 2001;Chan et al, 2001;Chan et al, 2003). Moreover, such an investment may work as a barrier to entry for competitors, (Bae and Noh, 2001).…”

Section: Role Of Randd Investment On Operational Performancementioning

confidence: 99%

“…Evidence supports this argument. Specifically, Chan et al (2003) and Anagnostopoulou and Levis (2008) suggested that persistence growth in sales and gross income only exists in an R&D-intensive sector.…”

Section: Role Of Randd Investment On Operational Performancementioning

confidence: 99%

“…This is attributed inter alia to changes in production process chains, methods of operation management, management control systems and production values (Daveport, 2000;Tsamenyi et al, 2001). Lower cost of sales may contribute to a higher gross profit margin (Anagnostopoulou and Levis, 2008), and probably to lower prices thus leading to increased customer satisfaction. Moreover, R&D activity can produce benefits in increased output or new products to gain new sales and market shares (Anagnostopoulou and Levis, 2008;Roper, 1997;Shortridge, 2004).…”

Section: Introductionmentioning

confidence: 99%

“…Lower cost of sales may contribute to a higher gross profit margin (Anagnostopoulou and Levis, 2008), and probably to lower prices thus leading to increased customer satisfaction. Moreover, R&D activity can produce benefits in increased output or new products to gain new sales and market shares (Anagnostopoulou and Levis, 2008;Roper, 1997;Shortridge, 2004). Thus, an extension of the market share and a reduction of cost of sales would improve performance in terms of accounting profitability and cash flows.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

RD activity and operating performance of small and medium-sized enterprises (SMEs): The case of a small open economy

Aggelopoulos¹,

Eriotis²,

Γεωργόπουλος³

et al. 2016

J. Account. Taxation

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The study investigates the impact of R&D activity on operational performance of small-and Mediumsized Enterprises (SMEs). Prior studies have indicated that R&D activity improves market performance of large listed companies in advanced economies. We extend the research objective on the operational performance of SMEs in the small open Greek economy in which SMEs are normally not listed companies operating in a "bank-driven" financial system. The empirical results highlight the positive role of R&D investment in the performance improvement of SMEs, especially in the increase of operating cash flows and gross profit margins. Furthermore, the results indicate that the performance impact of R&D activity is moderated by the life cycle and firm size, but it does not depend on the technological intensity of the industry. Overall, the findings suggest that R&D activity may be a positive factor in the enhancement of operational performance of SMEs.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Role Of Randd Investment On Operational Performancementioning

confidence: 99%

Section: Role Of Randd Investment On Operational Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

RD activity and operating performance of small and medium-sized enterprises (SMEs): The case of a small open economy

Aggelopoulos¹,

Eriotis²,

Γεωργόπουλος³

et al. 2016

J. Account. Taxation

View full text Add to dashboard Cite

show abstract

Board gender diversity and environmental performance: An industries perspective

2019

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This study investigates whether gender diversity on the board of directors in the United States is associated with firms' environmental performance. Under the theoretical framework of resource dependence theory, we argue that gender diversity brings a greater variety of skills to the board. Diversity allows for a healthy mix of knowledge and experience to improve the decision‐making process of the board. Using propensity score matching and controlling for endogeneity, this study uses a more rigorous statistical model than previous work. It also uses content analysis of directors' biographies to provide evidence of the role that gender diversity plays. We find gender diversity is positively associated with firms' environmental performance scores primarily in the more environmentally impacting industries. Therefore, our research provides valuable direction for those firms working to improve both their boards' gender diversity and their environmental performance. Our findings also offer insight into the mixed results of previous studies.

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