Reexamining the relationship between CEO ownership and R%D investment by considering the contextual effects

Bich-Ngoc Thi Le and Cheng-Yu Lee

International Journal of Business Innovation and Research, 2021, vol. 26, issue 3, 350-365

Abstract: Despite the agency theory prescribes risk alignment effect of corporate governance through CEO ownership, the empirical inquiries into the relationship between CEO ownership and corporate risk-taking thus far yielded a mixed result. This study aims to examine the nuances of such a relationship in the presence of financial slack and technological opportunities by contingency models. The study employs the secondary data in a sample of S%P 1500 from 2006 to 2018. According to empirical results, this study finds that both financial slack and technological opportunities positively moderate the CEO ownership-R%D investment relationship.

Keywords: behavioural agency theory; CEO ownership; R%D investment; financial slack; technological opportunities. (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:26:y:2021:i:3:p:350-365

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