Market Capitalization Influence on Firm Size with R&D Investment as A ‎Moderating Factor in The Indian Automobile Sector

  • Authors

    • Ms. Keerthana S. Research Scholar, Department of Commerce, Avinashilingam Institute for Home Science and ‎Higher Education for Women, Coimbatore, Tamil Nadu, India
    • Dr. P. Deivanai Assistant Professor (SG), Department of Commerce, Avinashilingam Institute for Home ‎Science and Higher Education for Women, Coimbatore, Tamil Nadu, India
    https://doi.org/10.14419/dpa51b60

    Received date: October 25, 2025

    Accepted date: December 3, 2025

    Published date: December 9, 2025

  • Financial Performance; Innovation; Research and Development; Technological Advancement

  • Abstract

    Technical advances and inventions will enhance business and financing in Research and ‎Development support, enabling competitors to compete in open markets. The study focused on ‎the research and development (R&D) cost and whether investments in R&D, market ‎capitalization, and performance impact the size of the firm. The study utilised R&D costs as a ‎control factor and business performance as an independent factor that influences the firm size. ‎Historical data from publicly accessible firm accounting records were used in this investigation. ‎The samples are selected from NSE/BSE-listed automobile companies using purposive ‎sampling. Based on the literature, it became necessary to analyse the commercial conditions, ‎market capitalization, firm size, and R&D of the automobile industry. This study examined the ‎impact of R&D costs, market capitalization, and commercial conditions on firm size. Including ‎that firm size is treated as a dependent variable. A total of 150 data points were analysed to test ‎the hypothesis for the period from 2010 to 2024, covering nominated automotive businesses. ‎The results indicate that for certain Indian automobile manufacturers, research and development ‎expenses are crucial, and they have a significant and positive relationship with the Size of the ‎Firm. Including the control variable also optimizes the size, except for Return on Assets ‎‎(Profitability). The moderator of the research is assessed by multiplying Market Capitalization ‎and Research and Development Cost.

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  • How to Cite

    S. , M. K. ., & Deivanai, D. P. . (2025). Market Capitalization Influence on Firm Size with R&D Investment as A ‎Moderating Factor in The Indian Automobile Sector. International Journal of Accounting and Economics Studies, 12(8), 291-296. https://doi.org/10.14419/dpa51b60