Nonlinear Effect of R&D Expenditures and Intangible Assets on Financial Performance: A Panel Threshold Analysis

Abstract

The financial outcomes of research and development (R&D) expenditures and intangible assets are not instantaneous and straightforward. To explore the varied perspectives of these relationships, this study employs panel threshold analysis. Analysis reveals significant variances in multiple regimes. The findings provide insights in the risk-return paradigm of R&D investment, dynamics of threshold points and the successive return, besides helping the policy makers to settle the priority sector to get the expected result in line with country’s investment policy.