Influence of industry R&D intensity on corporate product diversification: interaction effect of free cash flow

摘要

This study analyzes the effect of industry R&D intensity on the degree of product diversification and examines the interaction effect of free cash flow on the previous relationship at the current time in large US firms. Using the S&P 500 sample, we found support for the hypothesis that industry R&D intensity has a positive impact on the degree of product diversification. On the contrary, this study has found partial support for the hypothesis that free cash flow positively affects the previous relationship.