Author(s)

Xiao Chen

Corresponding Author

Xiao Chen

ABSTRACT

The influence of R&D expenditure on the profitability of listed agricultural enterprises is unstable and worthy of investigation since agricultural production is subject to various variables, such as the natural environment. In this paper, the impact of R&D expenditure on firm profitability is explored using GMM estimates using a research sample of 34 publicly traded agricultural companies from 2011 to 2020. On this foundation, this research examines the impact of business size as a moderating variable on the link between R&D spending and profitability. The study's findings reveal that R&D investment is considerably negatively associated with profitability, with a lag in this effect, and that a greater firm size will lessen the negative effect of R&D investment on profitability. Listed agricultural enterprises should enhance the intensity of R&D expenditure in accordance with their own scale, while also paying attention to the long-term benefits and consequences of inputs and outputs.

KEYWORDS

R&D investment, profitability, listed agricultural companies