This paper investigates the effects of advertising and R&D intensities on ROE and Tobin’s Q of five selected US IT firms. These companies are selected for complete availability of data over 1986-2019. Data are obtained from COMPUSAT. The time series and the cross-sectional data have been combined together to create a homogenous panel within the same IT sector. The data distributions appear to be near-normal. ROE is mildly negatively correlated with both advertising and R&D intensities. Tobin’s Q is mildly positively correlated with them. In both cases, the effects are mixed. For ROE, the net effect is negative in term of the sum of the slope coefficients. Likewise, it is positive for Tobin’s Q. Keywords: Advertising, R&D, Pooled OLS, ROE, Tobin’s Q. JEL Classifications: G10, G30, G39