RELATIONSHIPS BETWEEN INSTITUTIONAL OWNERSHIP, CAPITAL STRUCTURE AND RESEARCH AND DEVELOPMENT INVESTMENT

Hsueh-En Hsu, Chiulien C Venezia and Chelsea Schrader

Accounting & Taxation, 2015, vol. 7, issue 2, 75-82

Abstract: Research and development (R&D) is vital for an information technology (IT) firm’s innovation. This study investigates the relationship among institutional ownership, capital structure, and research and development investment for 336 listed information technology firms from 2006 to 2009. Empirical evidence shows that there is no significant relationship between institutional ownership and research and development investment. The finding suggests that institutional investors may not influence management decision making on research and development investment. This study also finds that capital structure has a negative relationship with research and development investment. The result indicates that information technology firms may use less debt when the investment outcome is uncertain.

Keywords: Research and Development; Institutional Ownership; Capital Structure; Information Technology (search for similar items in EconPapers)
JEL-codes: M40 M49 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/acttax/at-v7n2-2015/AT-V7N2-2015-7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:acttax:v:7:y:2015:i:2:p:85-72

Access Statistics for this article

Accounting & Taxation is currently edited by Terrance Jalbert

More articles in Accounting & Taxation from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).