Alam, A, Uddin, M orcid.org/0000-0003-1035-0365, Yazdifar, H et al. (2 more authors) (2020) R&D Investment, Firm Performance and Moderating Role of System and Safeguard: Evidence from Emerging Markets. Journal of Business Research, 106. pp. 94-105. ISSN 0148-2963
Abstract
The relationship between R&D and firm performance is highly dependent on the external environment. Therefore, this paper examined the effects of country level investor protection (safeguards) and governance mechanisms (systems) on the relationship between R&D and firm performance. Using GMM estimation and elasticity testing of panel data for 423 firms from 12 emerging countries, we find that a country's safeguards tend to moderate the relationship between R&D and firm performance more than the system of a country. The results indicate that safeguarding is relatively more important for the relationship between R&D and firm performance than other country level governance mechanisms, as the former can easily attract outside capital when it is strong. These results have significant implications for innovation policy. In particular, managers may wish to strengthen investor protection to promote high R&D investment in order to increase firm performance.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2019, Elsevier Inc. All rights reserved. This is an author produced version of an article published in Journal of Business Research. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | R&D investment; System; Safeguard; Emerging markets |
Dates: |
|
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: | 18 Sep 2019 09:59 |
Last Modified: | 26 Mar 2021 01:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jbusres.2019.09.018 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:150962 |