How eco-efficiency intensity and GHG emissions condition the capitalization of R&D in value creation: Evidence from the S&P 500

This study examines how R&D capitalization, eco-efficiency intensity, and greenhouse gas (GHG) emissions interact in shaping corporate value creation among S&P 500 firms. Using financial and environmental data from Bloomberg over the period 2010–2024, the analysis employs complementary econometric approaches to assess both direct and moderating effects. The results show that R&D capitalization has a positive and significant impact on value creation, while eco-efficiency intensity strengthens this relationship by enhancing resource productivity. In contrast, higher GHG emissions weaken the value relevance of R&D investments, suggesting that environmental inefficiencies reduce the effectiveness of innovation strategies. These findings highlight the critical role of integrating sustainability metrics into financial decision-making. The study contributes to the literature by providing empirical evidence on the conditional effects of environmental performance on the R&D–value creation nexus, offering relevant implications for investors, managers, and policymakers.