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R&D Investment, Financial and Environmental Performance Nexuses via Bootstrap Fourier Quantiles Granger Causality Test

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  • Feng-Li Lin

    (Department of Accounting, Chaoyang University of Technology, Taichung 41349, Taiwan)

Abstract

This study investigated the relationship between R&D investments and financial and environmental performance. The direction, size, and significance of various phases of these variables were generated using the bootstrap Fourier quantiles Granger causality test. In our results, a positive relationship between R&D investment and CO 2 emission reductions was found at two tails of quantiles. Additionally, we observed a significantly positive relationship between financial performance and CO 2 emission reductions at the 0.5 quantile and above. The correlation between R&D investment and financial performance was identified to be positive under the 0.3, 0.4, 0.5 and 0.9 quantiles and negative under the 0.5 and 0.6 quantiles. The changing linkages among R&D investment, environmental performance and financial performance found in this study provide important information for policy makers, aiding in the development of R&D strategies to upgrade financial and environmental performance simultaneously.

Suggested Citation

  • Feng-Li Lin, 2021. "R&D Investment, Financial and Environmental Performance Nexuses via Bootstrap Fourier Quantiles Granger Causality Test," Economies, MDPI, vol. 9(2), pages 1-11, May.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:2:p:85-:d:564160
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