Dissertation/Thesis Abstract

Ownership structure, financial structure and R&D investments: Evidence from Korean firms
by Chen, Yanghua, M.Sc., Singapore Management University (Singapore), 2011, 96; 1494089
Abstract (Summary)

Understanding factors that can enhance a firm's innovativeness is of critical concern in management research. Prior studies in strategy and financial economics have advanced our understanding of how resource allocation into innovation is shaped in a firm, mainly from the perspectives of ownership and financial structures. However, the extant literature is incomplete, because it treats ownership and financial structures as separate determinants, even though theoretical arguments and empirical evidences suggest that they are interdependent. This study investigates the determinants of firm's R&D investments by bridging ownership and financial structures. Ownerships held by inside and external owners are considered for ownership structure, while financial slack and leverage ratio are considered for financial structures.

Exploiting simultaneous equation modeling technique and data sample of Korean firms, I found the direct and indirect effects of different types of ownership on R&D investments. Different from previous studies, this paper showed that financial factors such as financial slack and leverage ratio that were used to be considered as determinants of R&D investments are just mediators through which ownership structure affects firm's strategic decision indirectly.

Indexing (document details)
Advisor: Choi, Young Rok
School: Singapore Management University (Singapore)
Department: Lee Kong Chian School of Business
School Location: Republic of Singapore
Source: MAI 49/06M, Masters Abstracts International
Subjects: Asian Studies, Management
Keywords: Controlling owners, Financial slack, Institutional investors, R&D investment
Publication Number: 1494089
ISBN: 978-1-124-67986-0
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