Trust and corporate R&amp;D investment: Cross-country evidence

Meng, Yijun; Wang, Xun; Zhang, Guoguo; Zheng, Shilin

doi:10.1016/j.frl.2020.101696

Cited by 24 publications

(12 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The regressions also present a statistically significant and negative relation with the debt ratio in both models. This relation can perhaps be explained by the fact that these companies are the largest in this sector, so typically they have lower levels of debt due to the confidence they convey to funders (Meng et al, 2020). For the OLS model, a 1% increase in the debt ratio leads to a 38% increase in the R&D intensity, ceteris paribus.…”

Section: Resultsmentioning

confidence: 99%

“…shown. For example, Ogawa (2007) emphasizes that high debt can lead to the risk of bankruptcy for companies and, as such, argues that if debt is high it has a negative impact on R&D. Meng et al (2020) add the issue of access to credit that is conditioned to low levels of debt, and as such, the financing entities offer companies lower costs of debt compared to companies with higher levels of debt.…”

Section: Discussionmentioning

confidence: 99%

“…Laborda et al (2020) add that companies need to control cash flows to avoid financial constraints in order to increase leverage and optimize debt costs. Moreover, countries with higher levels of common trust have more R&D expenditure to promote innovation, and this trust could diminish information asymmetries, inferior monitoring, and transaction costs that increases investors' risk-taking (Meng et al, 2020). Consequently, the cost of debt reduces and allows companies to access more external financing.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

An Analysis of the Impact of the 2030 Agreement on R&D Intensity in the Energy Sector

Estevão

2022

IJEEP

View full text Add to dashboard Cite

European Union countries signed the 2030 Climate and Energy Framework Agreement on October 24, 2014. This framework brings with it changes in the expectations of energy consumers and producers that has opened new avenues of research. Because the 2030 Agreement imposed targets to be achieved by 2030, energy companies could increase their R&D expenditures as they search for increased efficiency through a reduction of carbon dioxide emissions and stronger base in renewable sources that promotes innovation. In addition, the risks that arise from climate change can compromise the successful achievement of the targets, such as 27% renewable energy consumption, reduction in emissions of carbon dioxide by at least 40% and to improve energy efficiency. In this study, I conduct an evaluation of the behavior of R&D intensity in this sector. It analyze the behavior of companies related to the electricity sector in two different moments, before and after the 2030 Agreement, by using panel data and comparing the listed companies with headquarters in European Union countries with companies headquartered elsewhere in Europe. The results show that the 2030 Agreement had no effect on R&D intensity in companies in the electricity sector in the countries of the European Union.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

An Analysis of the Impact of the 2030 Agreement on R&D Intensity in the Energy Sector

Estevão

2022

IJEEP

View full text Add to dashboard Cite

show abstract

“…Similarly, Kroll and Kou ( 41 ) find that there are negative effects of the state-owned firms (both central and local governments) on the number of firms' patent applications. Meng et al ( 19 ) investigate the effects of trust on corporate innovation at the firm-level data in 72 countries. The authors find that a higher level of trust and intellectual property rights causes higher R&D expenditures (investments) from 1992 to 2016.…”

Section: Literature Reviewmentioning

confidence: 99%

“…There are various determinants of corporate innovation, such as domestic credits ( 13 , 14 ), financial development ( 15 ), institutional quality ( 16 , 17 ), stock market development ( 18 ), and trust ( 19 ). Recently, several papers show that uncertainty shocks significantly affect corporate innovation.…”

Section: Introductionmentioning

confidence: 99%

Effects of Pandemics on Corporate Innovation: Evidence From the Chinese Firms

Zhang

Hu²,

Huang

et al. 2021

Front. Public Health

View full text Add to dashboard Cite

This paper examines the effects of the pandemics-related uncertainty on corporate innovation in Chinese firms. For this purpose, the recent uncertainty measure of pandemics, the Pandemics Discussion Index (PDI), is used. The findings from the fixed-effects estimations show the negative impact of the PDI on corporate innovation. Government subsidies, operation profits, and total exports also positively affect corporate innovation. In addition, firms' management efficiency promotes corporate innovation. These results hold when the Blundell-Bond estimations are utilized to address potential endogeneity. Various robustness analyses, such as considering the lagged PDI and the lagged controls, are also conducted. Consequently, the main results remain robust. Thus, this paper provides novel and robust evidence on the negative impact of pandemics on Chinese firms' corporate innovation behavior.

show abstract

The impact of environmental, social, and governance ratings on corporate innovation: From the perspective of informal institutions

Zhu,

Li,

Wang

2024

Manage Decis Econ

View full text Add to dashboard Cite

The significance of rating events in capital markets has garnered considerable attention from investors, experts, and academics, with third‐party rating agencies being one of the topics. We focus on the impact of environmental, social, and governance (ESG) ratings on corporate innovation and confirm a positive relationship. We also believe that ESG ratings play a governance role as informal institutions in stimulating corporate innovation. The efficacy of ESG ratings in promoting corporate innovation is dependent on a favorable information environment that is devoid of negative influences. We confirm the synergistic effect of ESG ratings with other informal institutions and the substitution effect with formal institutions.

show abstract

Trust and corporate R&D investment: Cross-country evidence

Cited by 24 publications

References 21 publications

An Analysis of the Impact of the 2030 Agreement on R&D Intensity in the Energy Sector

An Analysis of the Impact of the 2030 Agreement on R&D Intensity in the Energy Sector

Effects of Pandemics on Corporate Innovation: Evidence From the Chinese Firms

The impact of environmental, social, and governance ratings on corporate innovation: From the perspective of informal institutions

Contact Info

Product

Resources

About