Alam, A, Uddin, M orcid.org/0000-0003-1035-0365 and Yazdifar, H (2019) Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system. R&D Management, 49 (1). pp. 21-32. ISSN 0033-6807
Abstract
This paper examines the financing behaviour of research and development (R&D) investments in emerging markets. Drawing on institutional theory and using panel data of generalized methods of moment estimation for a sample of 302 firms from 20 countries during the period 2003–2015, we find that emerging market firms tend to use internal funds for financing R&D investments. Interesting results emerged when the sample was divided as alliance and non‐alliance firms, and bank‐based and market‐based financial systems. The results show that R&D financing behaves differently for alliance and non‐alliance firms. Alliance firms use both internal and external funds for R&D investments, while non‐alliance firms do not use external funds. We also document that a country's financial system influences the choice of available sources of finance. Firms from countries that follow a bank‐based financial system tend to rely on external funds while firms from countries that follow a market‐based financial system depend more on internal funds for financing R&D investments. This study is important as it provides new evidence on financing R&D investments in emerging countries taking into account the institutional arguments of financing choices, and so should guide stakeholders about appropriate sources of R&D financing.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2017 RADMA and John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Alam, A. , Uddin, M. and Yazdifar, H. (2017), Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system. R&D Management. ., which has been published in final form at https://doi.org/10.1111/radm.12303. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 07 Nov 2017 11:58 |
Last Modified: | 08 Dec 2019 01:38 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/radm.12303 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:123463 |