Impact on Firm Liquidity Arising from Outsourcing Decisions as Evidenced by Off-Balance-Sheet Disclosures

Whelan, Garvan; Hanly, Paul; O'Connell, Vincent; Dittrich, Oldřich Ludwig; Ghazalah, Naser Abu

doi:10.1007/s11294-021-09814-7

Cited by 4 publications

(4 citation statements)

References 29 publications

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“…The net cash flows generated can be uncertain and uneven [24]. Consequently, the long payback period and volatile net cash flows [25] mean that R&D investments are frequently incompatible with the cash flow demands for interest and principal repayments commiserate with debt financing [25].…”

Section: Randd Investment and Financial Leveragementioning

confidence: 99%

The Impact of R&D Innovation Success on the Relationship between R&D Investment and Financial Leverage

O'Connell

Abughazaleh

Tahat

et al. 2022

Journal of Open Innovation: Technology, Market, and Complexity

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This paper explores the interrelationship between R&D investment, financial leverage, and a firm’s R&D innovation success. Using a sample of UK and EU firms, we predict that changes in one-year-ahead R&D investment are negatively associated with changes in financial leverage in the current period. Crucially, we also predict that this negative association is positively moderated by the extent to which firms are successful in generating commercially viable and technically feasible innovations from their R&D work. We use insights from International Accounting Standard (IAS) 38: Intangible Assets to measure R&D innovation success. Our empirical findings offer strong support for each of our theoretical predictions. Consequently, we contribute to the extant literature by demonstrating that R&D innovation success influences how firms finance their subsequent investments in R&D. Our work also shows that accounting disclosures have the potential to play an important role in open innovation networks.

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Section: Randd Investment and Financial Leveragementioning

confidence: 99%

The Impact of R&D Innovation Success on the Relationship between R&D Investment and Financial Leverage

O'Connell

Abughazaleh

Tahat

et al. 2022

Journal of Open Innovation: Technology, Market, and Complexity

Self Cite

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“…Weetman [10] (p. 153) explains that "financial reporting refers to a combination of quantitative accounting statements and narrative reports" directed at shareholders, lenders, and other stakeholders. Since the early part of the 21st century, a global accounting initiative that had already made slow but steady progress for several years began to gain serious momentum [9,11,22,23]. The aim of this initiative was (and is) the standardization of financial reporting practices globally.…”

Section: Financial Reportingmentioning

confidence: 99%

“…From a methodological standpoint, we encourage additional qualitative work incorporating case studies as well as interviews with experts and practitioners [26]. Quantitative work utilizing statistical analysis and econometric modelling [11,15,58,59] can also make an important contribution to the field.…”

Section: Future Researchmentioning

confidence: 99%

“…Today, innovation is increasingly seen as a multi-disciplinary activity and professionals from a variety of fields seek to contribute to debates and discussions around the emergence, development, revision, and abandonment of innovation-led strategies [3][4][5]. Although the accounting function in organizations is not commonly associated with innovation [6][7][8][9][10][11], Ries [7] has identified the potential of contemporary accounting systems to contribute to corporate innovation processes. Furthermore, there has been a recent upsurge in the degree of co-operation between accounting professionals and those organizational participants concerned with innovation [12].…”

Section: Introductionmentioning

confidence: 99%

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Financial Reporting as a Source of Innovation-Relevant Competitive Intelligence

O'Connell

Abughazaleh

Whelan

2021

Journal of Open Innovation: Technology, Market, and Complexity

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In this article, we demonstrate that contemporary financial reporting systems have the capacity to contribute significantly to the generation of innovation-relevant competitive intelligence. This potential arises because, as part of its regular work, the financial reporting system compiles, collects, analyzes, and synthesizes strategically relevant information about (i) complex internal technical processes related to inventions, discoveries, product development, process innovations, and the like; (ii) detailed sales, cost, and profit forecasts; (iii) consumer trends and innovative developments in the firm’s markets; (iv) actual and potential competitor actions in the market; and (v) regulatory changes, macro-economic trends, and information about the likely impact of government policies. We argue that this competitive intelligence can, if properly harnessed, lead to better informed discourses and decisions around innovation. Consequently, we highlight the potential—from both academic research and practical perspectives—of financial reporting as an enabler of innovation-relevant competitive intelligence embeddedness within firms.

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Impact of green credit policy on sustainability performance of high-pollution enterprises

Yan

Qin

2022

Environ Sci Pollut Res

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Impact on Firm Liquidity Arising from Outsourcing Decisions as Evidenced by Off-Balance-Sheet Disclosures

Cited by 4 publications

References 29 publications

The Impact of R&D Innovation Success on the Relationship between R&D Investment and Financial Leverage

The Impact of R&D Innovation Success on the Relationship between R&D Investment and Financial Leverage

Financial Reporting as a Source of Innovation-Relevant Competitive Intelligence

Impact of green credit policy on sustainability performance of high-pollution enterprises

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