Impact of R&D Expenses and Corporate Financial Performance

The paper investigates the R&D impact on the financial value of the company. The first part focuses on the previous findings in the existing literature and the relationships between R&D and earnings, operational performance, revenue growth and market value, in order to evidence the high potential of change in terms of new indicators. The second part includes the empirical analysis using a sample of 103 companies which registered high values of R&D, between 1979 and 2013. Overall, we assume a positive impact of R&D on the corporate value, using a new variable that includes both decision and outcome features