Innovative firms’ cash holdings, tax policies, and institutional environments

2021 ◽  
Author(s):  
Fengfei Li ◽  
Tse‐Chun Lin
Keyword(s):  
Cash Holdings ◽  
Tax Policies ◽  
Institutional Environments ◽  
Innovative Firms

Cash Holdings, Competition, and Innovation

2016 ◽  
Vol 51 (6) ◽  
pp. 1823-1861 ◽  
Author(s):  
Evgeny Lyandres ◽  
Berardino Palazzo
Keyword(s):  
Financial Constraints ◽  
Cash Holdings ◽  
Cash Holding ◽  
Product Markets ◽  
Innovative Firms ◽  
Uncertain Structure ◽  
Cash Policies ◽  
Intensity Of Competition ◽  
Commitment Device

We demonstrate theoretically and empirically that strategic considerations are important in shaping the cash policies of innovative firms. In our model, firms compete in product markets with uncertain structure using cash as a commitment device to invest in innovation. We show that firms’ equilibrium cash holdings are related to the expected intensity of competition. The sign and magnitude of this relation depends on firms’ financial constraints. Consistent with the strategic motive for hoarding cash, we show that firms’ cash holdings are negatively affected by their rivals’ cash-holding choices, even more so when competition is expected to be intense.

Institutional influence, cognition and competence of top managers and innovative firms

2014 ◽  
Vol 8 (1) ◽  
pp. 41-65 ◽  
Author(s):  
Kaidong Feng ◽  
Qunhong Shen ◽  
Shuming Zhao
Keyword(s):  
Resource Allocation ◽  
Analytical Framework ◽  
Institutional Environments ◽  
Content Type ◽  
Top Managers ◽  
Institutional Influence ◽  
Innovative Firms ◽  
Chinese Transition ◽  
The Relationship

Purpose – This paper aims to explore the relationship between the role of entrepreneurs and the innovation investment propensity of Chinese firms. This study is expected to enhance our understanding about the competence building of top management team for innovative development. Design/methodology/approach – The analytical framework draws upon the recent theoretical progress about innovative firms, cognition and competence building of top managers. A horizontal data comparison and four longitudinal case studies of representative firms in the Chinese power equipment industry are implemented. Findings – The cognitive backgrounds of top managers, which have a significant role in directing strategic resource allocation, are found to be influenced by institutional environments. Because the institutional environments which are under the Chinese transition impact different groups of firms in different ways, the relevant practices of these firms lead to dissimilar competence building of top managers. Originality/value – This paper establishes a nexus of “institutional influence–cognition–resource allocation”. Such a nexus highlights the role of cognition of top managers in influencing the strategy-making of firms. So it helps in explaining the conditions for competence building in firms.

scholarly journals Cash holdings, tax policies, and institutional environments of innovative enterprises

2022 ◽  
Vol 10 (4) ◽  
Author(s):  
Fengfei Chang Lee
Keyword(s):  
Research And Development ◽  
Financial Markets ◽  
Cash Holdings ◽  
Positive Association ◽  
Tax Credits ◽  
Shareholder Rights ◽  
Institutional Environments ◽  
Repatriation Taxes ◽  
Using Data ◽  
Shed Light

We discover a positive association between a firm's innovativeness and its cash holdings using data from 11,653 innovative enterprises in 51 non-US economies. This relationship is even stronger now that patent boxes have been implemented, which provide preferential tax treatment for patent income. Additionally, creative multinationals that face increased repatriation taxes amass larger total cash holdings. The positive innovativeness–cash relationship is more pronounced in countries with higher R&D tax credits, less developed financial markets, stronger governance, stronger shareholder rights, more technicians, better infrastructure, and greater investment freedom, as well as in industries with fiercer competition and longer innovation cycles. Innovative organizations with greater cash on hand invest more in research and development and generate more patents. In general, our findings shed light on the factors that contribute to the massive wealth buildup in creative enterprises globally.

Economic Effects of 2004-2009 Tax Reforms: Retrospective Analysis

2012 ◽  
pp. 108-123
Author(s):  
E. Penukhina ◽  
D. Belousov ◽  
K. Mikhailenko
Keyword(s):  
Retrospective Analysis ◽  
Tax Policy ◽  
Economic Effects ◽  
Tax Policies ◽  
Policy Changes ◽  
Tax Reforms ◽  
Russian Economy ◽  
Balanced Budget ◽  
Budget System

The article determines, describes and analyzes phases of tax reforms in Russia. We estimate macroeconomic and fiscal effects of various tax policies held during the second and third phases of tax reforms. The necessity of providing a balanced budget system, as well as complex assessment of effects of tax policy changes for the development of the Russian economy is noted.

Transactions in science in comparative perspective

2018 ◽  
pp. 52-69
Author(s):  
A. N. Oleinik
Keyword(s):  
Transaction Costs ◽  
Academic Freedom ◽  
North American ◽  
Institutional Environment ◽  
Scientific Productivity ◽  
Institutional Environments ◽  
Academic Administrator ◽  
The North ◽  
American Case ◽  
Transactional Approach

The article develops a transactional approach to studying science. Two concepts play a particularly important role: the institutional environment of science and scientific transaction. As an example, the North-American and Russian institutional environments of science are compared. It is shown that structures of scientific transactions (between peers, between the scholar and the academic administrator, between the professor and the student), transaction costs and the scope of academic freedom differ in these two cases. Transaction costs are non-zero in both cases, however. At the same time, it is hypothesized that a greater scope of academic freedom in the North American case may be a factor contributing to a higher scientific productivity.

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