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.
|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|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be