2015
DOI: 10.1142/s0217590815500034
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EFFECTS OF CORPORATE AND COUNTRY GOVERNANCE ON R&D INVESTMENT: EVIDENCE FROM EMERGING MARKETS

Abstract: We investigate how corporate governance influences R&D across 13 emerging markets. We find that superior corporate governance increases corporate R&D spending. These results suggest that corporate governance may influence management's discretion to avoid risky innovative projects. We also find that the link between firm-level governance and corporate R&D is stronger in countries with weaker country-level governance. These results suggest substitutability between firm and country governance in generating innova… Show more

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Cited by 10 publications
(13 citation statements)
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“…Such a negative relationship is stronger between weak corporate governance and green innovation, especially when companies have smaller institutional ownership. The results of this study are in line with that of the present study and the results of Hasan et al (2015), Chakraborty et al (2014), Bingxiang et al (2014), Aghion et al (2013), Chemmanur and Tian (2013), Driver and Guedes (2012), Humphery-Jenner (2011), Hillier et al (2011), Dhaoui and Jouini (2011), Xiao (2010) and Varamesh et al (2014). According to the obtained results, the increase of managerial entrenchment could decrease the innovation of companies listed in Tehran Stock Exchange, significantly.…”
Section: Discussionsupporting
confidence: 93%
“…Such a negative relationship is stronger between weak corporate governance and green innovation, especially when companies have smaller institutional ownership. The results of this study are in line with that of the present study and the results of Hasan et al (2015), Chakraborty et al (2014), Bingxiang et al (2014), Aghion et al (2013), Chemmanur and Tian (2013), Driver and Guedes (2012), Humphery-Jenner (2011), Hillier et al (2011), Dhaoui and Jouini (2011), Xiao (2010) and Varamesh et al (2014). According to the obtained results, the increase of managerial entrenchment could decrease the innovation of companies listed in Tehran Stock Exchange, significantly.…”
Section: Discussionsupporting
confidence: 93%
“…Miozzo & Dewich (2002) argue that innovation depends on the adequacy of corporate governance. As a result, such elements were identified from the authors mentioned above, Some articles analyze governance not only at the corporate level, but also public governance, arguing that without public governance organizations are hampered in their innovation strategies (Visintin, Ozgen, Tylecote, & Handscombe, 2005;Sapra, Subramanian & Subramanian, 2014, Hasan, Raymar & Song, 2015. Atanassov (2013) demonstrates that governance mechanisms can even soften the negative effects that control imposed by public governance can cause.…”
Section: Analysis and Resultsmentioning
confidence: 99%
“…They also find that the influence of accounting disclosure on the loan syndicates is more significant for firms with superior governance environment. Hasan et al, (2014a) use a cross-section sample to present the evidence that firm-level corporate governance and country-level governance both have a significant effect on innovation activities.…”
Section: Methods and Resultsmentioning
confidence: 99%
“…While most of the conclusion has been from U.S. firms, recent research has also investigated emerging economies (Chen et. al., 2011;Francis et al, 2012b;Gibson, 2003;Hasan and Song, 2014a;Klapper and Love, 2004). Our research further analyzes innovation in emerging countries by considering the impact of country-level and firm-level governance standards on the relationship between accounting disclosure and innovation, as measured by R&D.…”
Section: Introductionmentioning
confidence: 99%
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