R&D Investment, Terrorism and Firm Market Performance
Abstract
Pakistan is facing a menace in the form of terrorism which has an adverse impact on both the social and corporate environment. This paper examines the impact of R&D investment on fi rm market performance in the non-fi nancial sector of Pakistan from the year 2006 to 2012. We also consider the moderating role of terrorism on the relationship between R&D investment and fi rm market performance. After controlling for fi rm size, leverage and age, we found that R&D investment has a positive and statistically signifi cant impact on fi rm market performance. Contrary to Ehie & Olibe (2010), we found a negative moderating impact of terrorism on the relationship between R&D investment and fi rm market performance.Keywords: R&D, Firm Market Performance, Terrorism, Partial Moderation, Pakistan.References
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