The Impact of R&D Investment on Shareholders Return

Today, innovations play a crusial role in economic development, and in the context of modern globalisation it is one of the determining factors of competitiveness. One of the key components of innovative investments is Research and Development (R&D), and from year to year, along with a growing trend in the development of innovations, there is also a tendency towards an increase in R&D investments. Given the fact, the potential impact of R&D investments on the shareholders return in Russia can be quite large, it motivates to make a research. The work uses a sample of Russian companies from 2015 to 2019 and considers two regression equations: a probability equation constructed according to the form of a logistic model with random effects to assess the impact of R&D on shareholder returns, and a linear regression equation with random effects to estimate the size of the received profit. The results show that investment in R&D positively affects the shareholders return and the growth of investment in R&D contributes to a higher shareholders return.