Business Strategy and R&D Expenditures

Han Li

International Journal of Financial Research, 2020, vol. 11, issue 4, 144-154

Abstract: This research testifies that there is a positive relationship between business strategy and R&D expenditures based on the data from the listed firms in China. The paper also finds that the management myopic behaviour would make the firms reduce the R&D spending when the strategy score is in the higher level. Furthermore, the research shows the positive relationship between strategy and R&D expenditures still exits when the firms are SOEs and the firms have medium or high level of internal control quality. The result is robustness even after making the endogeneity tests.

Keywords: business strategy; R&D expenditures; real earnings management (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:144-154

DOI: 10.5430/ijfr.v11n4p144

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