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Effects Of Corporate And Country Governance On R&D Investment: Evidence From Emerging Markets

Author

Listed:
  • IFTEKHAR HASAN

    (Fordham University — Gabelli School of Business, 5 Columbus Circle, New York, NY 10019, United States;
    Bank of Finland, P. O. Box 160, Helsinki, 00101 FI, Finland)

  • STEVEN RAYMAR

    (Fordham University — Gabelli School of Business, 5 Columbus Circle, New York, NY 10019, United States)

  • LIANG SONG

    (Michigan Technological University, 1400 Townsend Dr. Houghton, M149931, United States)

Abstract

We investigate how corporate governance influences R&D across 13 emerging markets. We find that superior corporate governance increases corporate R&D spending. These results suggest that corporate governance may influence management's discretion to avoid risky innovative projects. We also find that the link between firm-level governance and corporate R&D is stronger in countries with weaker country-level governance. These results suggest substitutability between firm and country governance in generating innovation activities.

Suggested Citation

  • Iftekhar Hasan & Steven Raymar & Liang Song, 2015. "Effects Of Corporate And Country Governance On R&D Investment: Evidence From Emerging Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(01), pages 1-17.
    • Handle: RePEc:wsi:serxxx:v:60:y:2015:i:01:n:s0217590815500034
    DOI: 10.1142/S0217590815500034
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    References listed on IDEAS

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    1. Zopunyan Y. S., 2014. "Bitcoin - currency of XXI century," Электронный вестник Ростовского социально-экономического института, CyberLeninka;Негосударственное образовательное учреждение высшего профессионального образования «Ростовский социально-экономический институт», issue 3, pages 54-59.
    2. repec:zbw:bofrdp:2011_017 is not listed on IDEAS
    3. Bronwyn H. Hall & Nathan Rosenberg (ed.), 2010. "Handbook of the Economics of Innovation," Handbook of the Economics of Innovation, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Financial innovation and bank growth: The role of institutional environments," The North American Journal of Economics and Finance, Elsevier, vol. 53(C).
    2. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Country governance, corruption, and the likelihood of firms’ innovation," Economic Modelling, Elsevier, vol. 92(C), pages 326-338.

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    More about this item

    Keywords

    Corporate governance; emerging market; innovation; G15; G24; G38;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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