Impact of R&D Expenditure on Stock Performance: The Mediation of CapEx and Moderation of Firm Age

Abstract - This study investigates the relationship between R&D intensity and stock performance, considering CapEx as a mediator and firm age as a moderator. Regression and mediation analyses reveal that higher R&D spending is associated with improved cumulative returns, but the effect is not uniformly strong across firms. CapEx investments and firm age partially influence this relationship. Findings suggest that while R&D is a positive driver of stock performance, other strategic and organizational factors must also be managed carefully to maximize returns. Key Words: R&D intensity, CapEx, firm age, cumulative returns, stock performance.