Performance Feedback and Firms' R&D Frequency: A comparison between SOEs and POEs

Abstract

Leveraging the behavioral theory of the firm (BTF), the study examines how performance feedback affects firms' R&D investment frequency in the context of China's emerging economy. We found that historical and social performance feedbacks induce different R&D frequency, and the commonality and inconsistency of SOEs and POEs in R&D frequency in various performance feedback situations.