Role of R%D expenditure, CEO compensation and financial ratios for country's economic sustainability and innovative growth

Raminta Benetyte, Javier Giner Rubio, Bohdan Kovalov, Nadiya Matviychuk-Soskina and Rytis Krusinskas

International Journal of Global Energy Issues, 2021, vol. 43, issue 2/3, 228-246

Abstract: In this paper, we combine to evaluate interrelation of the financial performance indicators of companies from different European countries, rewards paid to CEO (compensation), companies' research and development (R%D) expenditure, changes in sustainability and innovativeness of country's economy. In this paper, economic sustainability is treated as economic growth in a long-term perspective, based on long-term value-added innovations. In this perspective, companies are one of the main sources in delivering financial/economic value from innovation for the country. That is why there are ongoing discussions to determine the links between companies' R%D, managers making risky decisions and countries economic development. The results of our research reflect the assumptions that companies' efficiently managed financial resources and financially motivated top-level managers targeting to accept the risk for R%D can contribute not only to increasing of company's economic potential, but also to the sustainability of a country's economy. These results reflect the assumptions that companies' efficiently managed financial resources and financially motivated top-level managers targeting to accept the risk for R%D can contribute not only to increasing of company's economic potential, but also to the sustainability of a country's economy.

Keywords: business financial performance; R%D expenditure; economic sustainability; innovation of country. (search for similar items in EconPapers)
Date: 2021
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