R&D expenditure and managerial ownership: evidence from firms of high-vs-low R&D intensity

Purpose Corporate managers spend on research and development (R&D) for reasons of growth and survival. However, they may be less willing to invest in R&D because of its long-term horizon, high failure rate and uncertain outcomes. This study aims to explore the extent to which managerial ownership influences R&D expenditure decisions. Design/methodology/approach Apart from the linear regression models, this study uses a semi-parametric quantile regression analysis for a sample of German non-financial firms throughout 2009–2018. Findings This study finds a nonmonotonic sensitivity of R&D spending to the level of managerial ownership over various quantiles of R&D distribution. That is, managerial ownership increases the expenditure on R&D at low R&D intensity firms. However, it decreases the expenditure on R&D at high R&D intensity firms. These results suggest the presence of a maximum level of R&D expenditure, after which owner-managers would be unwilling to spend on R&D. Practical implications The results confirm the importance of corporate ownership structure for firm R&D and innovation activities. It provides an implication for corporate policymakers to reform the corporate ownership structures to encourage corporate managers and owners to invest in R&D projects. Originality/value This study offers two distinct contributions study. First, it provides the first German shred of evidence on the nonlinear relationship between managerial ownership and R&D expenditure decisions by distinguishing between high and low R&D intensity firms. Second, unlike prior research, it uses a semi-parametric quantile regression analysis. This method is more efficient than least-squares estimators and produces robust estimators to heteroscedasticity of the residuals.

Does corporate ownership enforce sustainable development? An empirical study on Korean companies.

This study examined Korean companies on whether ownership affects corporate social responsibility performance (CSP) to influence on the corporate financial performance (CFP). According to the results, ownership has causational relationship with financial performance of firms varies upon proxy of CFP. Ownership and CFP demonstrates reverse-U type with ROA but U-type with market to book ratio (MB ratio). Second, ownership and CSP does not prove to have any causality. Partly, ownership shows negative effects on corporate governance. Finally, CSP does not affect profit (ROA) but improve the market value. For the moment, CSP is not an active factor to find out that high proportion of the companies in the sample during the research period were credited low CSP. Most of the companies with high credits on CSP are efficient and stable profit earning companies which leave room to consider the slack-resource theory.

The Difference LTC Corporate Ownership Makes in Collaborations With Emergency Operation Centers During Disasters

Collaboration between nursing homes (NHs) and assisted living communities (ALCs) with state and local entities (e.g., emergency operation centers (EOCs)) is critical during a disaster. The corporate structure of NHs and ALCs can make a difference in their ability to collaborate with these entities during a disaster. This mixed-method study examines differences in satisfaction with collaboration with state and local entities during Hurricane Irma in Florida in 2017 between corporate-owned NHs (N=24), larger (25+ beds) ALCs (N=38) and smaller ALCs (N=30). We also explore collaboration in Florida NHs (N=35) and ALCs (N=123) specific to COVID19. Scaled 1-5 survey data results indicate that small ALCs are the least satisfied (M=2.90) with EOC collaboration, compared to NHs (M=3.04) and larger ALCs (M=3.33) during Irma. Smaller ALCs were more dissatisfied with COVID19 mandates compared to larger ALCs and NHs. Ways to improve collaboration during a disaster, especially for smaller ALCs, will be discussed.

Does Transportation Time Affect Corporate Financialization----Based on the Quasi-natural Experiment on High-Speed Railway Opening

Objectives: The construction of high-speed railway (HSR) in China has developed rapidly in recent years, and the opening of high-speed railway has had a significant impact on the economic development of the region and has profoundly affected the development of regional enterprises. Based on the data of Chinese A-share listed companies from year 2004 to 2017, this paper examines whether the opening of high-speed railway has an impact on the degree of financialization of corporates. The results show that the opening of high-speed railway significantly boosts the financialization level of enterprises, and this effect is most obvious two years after the opening of high-speed railway, with significant regional heterogeneity and corporate ownership heterogeneity, and mainly occurs in high financing constrained enterprises and low technology enterprises. Finally, the paper proposes corresponding countermeasures in response to the research findings.

Analyzing IKEA’s International Investment in China Based on the Theory of International Production Compromise

This study analyzes IKEA’s localized operation in China through the eclectic theory of international production. Firstly, the development history of IKEA is discussed along with its development in China. Secondly, IKEA’s direct investment in China is analyzed from the perspective of IKEA’s eclectic theory of direct investment in international production, the corporate ownership, internalization, and location advantages of the company, in addition to the challenges of IKEA’s investment and operation in China, hoping to enlighten the process of formulating overseas expansion strategies for foreign direct investment. This study aims to guide students to strengthen their skills in formulating and implementing strategies in regard to the international investment process of multinational companies. On the one hand, they can analyze the strategies used and challenges faced by IKEA in its international investment in China to stimulate their thinking on the international investment of Chinese enterprises; on the other hand, they can also strengthen their understanding of the international investment theory by analyzing IKEA’s international investment in China. This study hopes to enhance students’ understanding and application skills in regard to companies’ transnational operations.