ABSTRACT
This study examines the relationship between firm diversification strategy and R&D intensity for a sample of large French companies between 2008 and 2012. Applying quantile regression, we provide evidence that the choice of diversification affects R&D intensity in a differentiated way. The results indicate that a low level of diversification (below the twentieth quantile) has no significant impact on R&D intensity. Conversely, a moderate or high level of diversification has a negative and significant impact on R&D intensity. These findings suggest that R&D intensity seems to be significantly higher in related-business firms than in unrelated-business firms.
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Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 Société des Bourses Françaises.
2 According to International Financial Reporting Standards (IFRS) 8, an entity is required to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.