International Scientific Journal of Engineering and Management

An International Scholarly || Multidisciplinary || Open Access || Indexing in all major Database & Metadata
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ISSN: 2583-6129

Impact Factor: 7.839

Impact of R&D Expenditure on Stock Performance: The Mediation of CapEx and Moderation of Firm Age

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Impact of R&D Expenditure on Stock Performance: The Mediation of CapEx and Moderation of Firm Age

Authors:

Dr. A. Thiruchelvi1, Samyuktha Sree T2, Navis Millingtonia G3, Sarabesh Dorairajan B4, Hariharan Yuvaraj5,  Jaisurya G6, Anandhapadmanabhan7

 Department of Management Studies, CEG Campus, Anna University

Abstract - This study investigates the relationship between R&D intensity and stock performance, considering CapEx as a mediator and firm age as a moderator. Regression and mediation analyses reveal that higher R&D spending is associated with improved cumulative returns, but the effect is not uniformly strong across firms. CapEx investments and firm age partially influence this relationship. Findings suggest that while R&D is a positive driver of stock performance, other strategic and organizational factors must also be managed carefully to maximize returns.

Key Words:  R&D intensity, CapEx, firm age, cumulative returns, stock performance.

 


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