R&amp;amp;D Expenditure as a Response to Peer Influence

Bui, Dien Giau; Chen, Yehning; Lin, Chih‐Yung; Lin, Tse-Chun

doi:10.2139/ssrn.3412770

Cited by 4 publications

(5 citation statements)

References 13 publications

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“…However, our paper differs from Bui et al (2019) along several dimensions. First, Bui et al (2019) correlate the lagged average peer R&D with a firm's current innovation outputs. This only indicates an association between average industry R&D and each firm's future performance rather than the implications of mimicking.…”

Section: Introductionmentioning

confidence: 85%

“…Observably, the empirical literature documents evidence suggesting that adopting a rival firm's R&D policies impact positively on firm value, operating performance and innovation output of the focal firm. For instance, Bui et al (2019) find a linear relationship between a firm's R&D and firm value and risk. This evidence appears to suggest that there is no limit to the effect of innovation on corporate outcomes, contrary to Hartmann et al (2006), who argue that R&D spending yields reward up to a cut-off point beyond which additional investment in innovation does not generate commensurate returns.…”

Section: Related Literature and Hypotheses Developmentmentioning

confidence: 99%

“…Second, we contribute to the literature by providing new evidence on the specific channels through which peer firms influence R&D. This line of inquiry has so far been overlooked in the extant literature, except for the contemporaneous study on R&D by Bui et al (2019), which examines how peer effects impact innovation. However, our paper differs from Bui et al (2019) along several dimensions. First, Bui et al (2019) correlate the lagged average peer R&D with a firm's current innovation outputs.…”

Section: Introductionmentioning

confidence: 97%

“…In doing so, we also evaluate several ways of identifying mimicking firms, which are not directly observable. Second, in examining heterogeneity in peer effects using firm characteristics and product market competition, Bui et al (2019) estimate separate regressions by splitting the sample into high and low regime firms.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Do peer firms influence innovation?

Machokoto

Gyimah

Ntim

2021

The British Accounting Review

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Section: Introductionmentioning

confidence: 85%

Section: Related Literature and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Do peer firms influence innovation?

Machokoto

Gyimah

Ntim

2021

The British Accounting Review

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“…Second, we contribute to the existing literature by providing new evidence about the mechanism of peer effect of enterprise innovation. Although the previous literature confirms that enterprise innovation is affected by other enterprise in the industry ( Brown et al, 2009 ; Bui et al, 2021 ), it is not clear through which channel peer effect of enterprise innovation. The inherent uncertainty of innovation activities makes managers’ evaluation of innovation investment crucial.…”

Section: Introductionmentioning

confidence: 90%

Peer effect of enterprise innovation: Empirical evidence from China

Liu¹,

Yang²,

Zheng³

et al. 2022

Front. Psychol.

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Innovation investment is crucial to enterprise development and economic growth. As peer enterprises face similar market environment and development prospects, they pay attention to the innovation activities of peer enterprises in the industry because of economic rationality or the idea of seeking advantages and avoiding disadvantages. This paper aims to investigate the interaction and channel of enterprise innovation behavior of peer effect based on the data of Chinese share-listed enterprises from 2010 to 2021. The results show that peer effect exists in the innovation behavior of enterprises. We also provide evidence that managerial ability is the mechanism of the peer effect of enterprise innovation. In addition, we find that small-scale enterprises are more likely to be affected by the innovation behavior of peer enterprises compared with large enterprises. More importantly, we reveal that economic policy uncertainty significantly negatively regulates the peer effect of enterprise innovation.JEL classificationG30, G31, O31

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Peer Effects in Corporate Governance Practices: Evidence from Universal Demand Laws

Foroughi

Marcus

Nguyen

et al. 2021

The Review of Financial Studies

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Firms in the same networks tend to have similar corporate governance practices. However, disentangling peer effects, where governance practices propagate from one firm to another, from selection effects, where firms with similar preferences self-select into linked groups, is difficult to do. Studying board-interlocked firms, we utilize the staggered adoption of universal demand laws across states to identify and estimate causal peer effects in governance policies. We find support for the existence of peer effects in the adoption of antitakeover provisions. The impact of universal demand laws on the governance experience of interlocking directors likely explains these effects.

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R&D Expenditure as a Response to Peer Influence

Cited by 4 publications

References 13 publications

Do peer firms influence innovation?

Do peer firms influence innovation?

Peer effect of enterprise innovation: Empirical evidence from China

Peer Effects in Corporate Governance Practices: Evidence from Universal Demand Laws

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