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Business Strategy and R&D Expenditures

Author

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  • Han Li

Abstract

This research testifies that there is a positive relationship between business strategy and R&D expenditures based on the data from the listed firms in China. The paper also finds that the management myopic behaviour would make the firms reduce the R&D spending when the strategy score is in the higher level. Furthermore, the research shows the positive relationship between strategy and R&D expenditures still exits when the firms are SOEs and the firms have medium or high level of internal control quality. The result is robustness even after making the endogeneity tests.

Suggested Citation

  • Han Li, 2020. "Business Strategy and R&D Expenditures," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 144-154, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:144-154
    DOI: 10.5430/ijfr.v11n4p144
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    References listed on IDEAS

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    1. Kathleen A. Bentley & Thomas C. Omer & Nathan Y. Sharp, 2013. "Business Strategy, Financial Reporting Irregularities, and Audit Effort," Contemporary Accounting Research, John Wiley & Sons, vol. 30(2), pages 780-817, June.
    2. Roychowdhury, Sugata, 2006. "Earnings management through real activities manipulation," Journal of Accounting and Economics, Elsevier, vol. 42(3), pages 335-370, December.
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    Cited by:

    1. Emilian DOBRESCU, 2021. "Potential Output: A Market Conditionalities Interpretation," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-38, December.

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