Managerial ability and R&D investment: do CEOs’ and firms’ characteristics matter?

References

• Baltagi, B. H., and Y. -J. Chang. 2000. “Simultaneous Equations with Incomplete Panels.” Econometric Theory 16 (2): 269–279. doi:10.1017/S0266466600162073.
   Web of Science ®Google Scholar
• Bernanke, B., and M. Gertler. 1989. “Agency Costs, Net Worth, and Business Fluctuations.” The American Economic Review 79 (1): 14–31.
   Web of Science ®Google Scholar
• Bernanke, B., and M. Gertler. 1999. “The Financial Accelerator in a Quantitative Business Cycle Framework.” Handbook of Macroeconomics 1: 1341–1393.
   Google Scholar
• Bloch, C. 2005. “R&D Investment and Internal Finance: The Cash Flow Effect.” Economics of Innovation and New Technology 14 (3): 213–223. doi:10.1080/1043859042000312710.
   Web of Science ®Google Scholar
• Bonsall, S. B., IV, E. R. Holzman, and B. P. Miller. 2016. “Managerial Ability and Credit Risk Assessment.” Management Science 63 (5): 1425–1449. doi:10.1287/mnsc.2015.2403.
   Web of Science ®Google Scholar
• Borghesi, R., J. F. Houston, and A. Naranjo. 2014. “Corporate Socially Responsible Investments: CEO Altruism, Reputation, and Shareholder Interests.” Journal of Corporate Finance 26: 164–181. doi:10.1016/j.jcorpfin.2014.03.008.
   Web of Science ®Google Scholar
• Brown, J. R., G. Martinsson, and B. C. Petersen. 2012. “Do Financing Constraints Matter for R&D?” European Economic Review 56 (8): 1512–1529. doi:10.1016/j.euroecorev.2012.07.007.
   Web of Science ®Google Scholar
• Carter, M. E., F. Franco, and M. Gine. 2017. “Executive Gender Pay Gaps: The Roles of Female Risk Aversion and Board Representation.” Contemporary Accounting Research 34: 1232–1264. doi:10.1111/1911-3846.12286.
   Web of Science ®Google Scholar
• Chakraborty, A., and S. Sheikh. 2010. “Antitakeover Amendments and Managerial Entrenchment: New Evidence from Investment Policy and CEO Compensation.” Quarterly Journal of Finance and Accounting 49 (1): 81–103.
   Google Scholar
• Chemmanur, T., and I. Paeglis. 2005. “Management Quality, Certification, and Initial Public Offerings.” Journal of Financial Economics 76 (2): 331–368. doi:10.1016/j.jfineco.2004.10.001.
   Web of Science ®Google Scholar
• Chemmanur, T., I. Paeglis, and K. Simonyan. 2009. “Management Quality, Financial and Investment Policies, and Asymmetric Information.” The Journal of Financial and Quantitative Analysis 44 (5): 1045–1079. doi:10.1017/S0022109009990299.
   Web of Science ®Google Scholar
• Chen, L. -Y., Y. -F. Chen, and S. -Y. Yang. 2017. “Managerial Incentives and R&D Investments: The Moderating Effect of the directors’ and officers’ Liability Insurance.” The North American Journal of Economics and Finance 39: 210–222. doi:10.1016/j.najef.2016.10.007.
   Web of Science ®Google Scholar
• Cheng, S. 2004. “R&D Expenditures and CEO Compensation.” The Accounting Review 79 (2): 305–328. doi:10.2308/accr.2004.79.2.305.
   Web of Science ®Google Scholar
• Chen, H. L., and Y. S. Huang. 2006. “Employee Stock Ownership and Corporate R&D Expenditures: Evidence from Taiwan’s Information-Technology Industry.” Asia Pacific Journal of Management 23 (3): 369–384. doi:10.1007/s10490-006-9005-4.
   Google Scholar
• Chowdhury, J., and J. Fink. 2017. “How Does CEO Age Affect Firm Risk?” Asia-Pacific Journal of Financial Studies 46 (3): 381–412. doi:10.1111/ajfs.12174.
   Web of Science ®Google Scholar
• Ciftci, M., and M. Darrough. 2016. “Does the Riskiness of R&D Outweigh Its Benefits? The Perspective of US Private Lenders.” Journal of Business Finance and Accounting 43 (5–6): 654–692. doi:10.1111/jbfa.12196.
   Web of Science ®Google Scholar
• Cornaggia, K. J., G. V. Krishnan, and C. Wang. 2017. “Managerial Ability and Credit Ratings.” Contemporary Accounting Research 34: 2094–2122. doi:10.1111/1911-3846.12334.
   Web of Science ®Google Scholar
• Czarnitzki, D., and H. Hottenrott. 2011. “Financial Constraints: Routine versus Cutting Edge R&D Investment.” Journal of Economics & Management Strategy 20: 121–157. doi:10.1111/j.1530-9134.2010.00285.x.
   Web of Science ®Google Scholar
• David, P., J. P. O’Brien, and T. Yoshikawa. 2008. “The Implications of Debt Heterogeneity for R&D Investment and Firm Performance.” Academy of Management Journal 51 (1): 165–181. doi:10.5465/amj.2008.30772877.
   Web of Science ®Google Scholar
• Demerjian, P., B. Lev, and S. McVay. 2012. “Quantifying Managerial Ability: A New Measure and Validity Tests.” Management Science 58: 1229–1248. doi:10.1287/mnsc.1110.1487.
   Web of Science ®Google Scholar
• Faccio, M., M. T. Marchica, and R. Mura. 2016. “CEO Gender, Corporate Risk-Taking, and the Efficiency of Capital Allocation.” Journal of Corporate Finance 39: 193–209. doi:10.1016/j.jcorpfin.2016.02.008.
   Web of Science ®Google Scholar
• García-Vega, M., and Ó. Vicente-Chirivella. 2020. “Do University Technology Transfers Increase firms’ Innovation?.” European economic review 123: 103388.
   Web of Science ®Google Scholar
• Guarascio, D., M. Pianta, and F. Bogliacino. 2016. “Export, R&D and New Products. A Model and a Test on European Industries.” Journal of Evolutionary Economics 26 (4): 869–905. doi:10.1007/s00191-016-0445-9.
   Web of Science ®Google Scholar
• Hausman, J. A., and W. E. Taylor. 1981. “Panel Data and Unobservable Individual Effects.” Econometrica: Journal of the Econometric Society 49: 1377–1398. doi:10.2307/1911406.
   Web of Science ®Google Scholar
• Himmelberg, C. P., and B. C. Petersen. 1994. “R & D and Internal Finance: A Panel Study of Small Firms in High-Tech Industries.” The Review of Economics and Statistics 76 (1): 38–51. doi:10.2307/2109824.
   Web of Science ®Google Scholar
• Hussain, J., C. C. Lee, and Y. Chen. 2022. “Optimal Green Technology Investment and Emission Reduction in Emissions Generating Companies Under the Support of Green Bond and Subsidy.” Technological Forecasting & Social Change 183: 121952. doi:10.1016/j.techfore.2022.121952.
   Web of Science ®Google Scholar
• Kang, S., E. H. Kim, and Y. Lu. 2018. “Does Independent directors’ CEO Experience Matter?” Review of Finance 22 (3): 905–949. doi:10.1093/rof/rfx023.
   Web of Science ®Google Scholar
• Kaplan, S. N., and L. Zingales. 1997. “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?” The Quarterly Journal of Economics 112 (1): 169–215. doi:10.1162/003355397555163.
   Web of Science ®Google Scholar
• Karuna, C. 2020. “Product Market Competition and Managerial Pay.” Journal of Management Accounting Research 32 (1): 203–222. doi:10.2308/jmar-52503.
   Web of Science ®Google Scholar
• Lee, C. C., and C. W. Wang. 2021. “Firms’ Cash Reserve, Financial Constraint, and Geopolitical Risk.” Pacific-Basin Finance Journal 65: 101480. doi:10.1016/j.pacfin.2020.101480.
   Web of Science ®Google Scholar
• Lee, C. C., and C. W. Wang. 2022. “Liquidation Threat: Behavior of CEO Entrenchment.” Finance Research Letters 47: 102949. doi:10.1016/j.frl.2022.102949.
   Web of Science ®Google Scholar
• Lee, C. C., C. W. Wang, W. C. Chiu, and T. S. Tien. 2018. “Managerial Ability and Corporate Investment Opportunity.” International Review of Financial Analysis 57: 65–76. doi:10.1016/j.irfa.2018.02.007.
   Web of Science ®Google Scholar
• Lee, C. C., C. W. Wang, and C. M. Pan. 2022. “Do Financial Inclusion and R&D Matter? Exploring the Effect of Uncertainty on Economic Performance.” Applied Economics 54 (3): 307–325. doi:10.1080/00036846.2021.1950909.
   Web of Science ®Google Scholar
• Li, X., A. Low, and A. K. Makhija. 2017. “Career Concerns and the Busy Life of the Young CEO.” Journal of Corporate Finance 47: 88–109. doi:10.1016/j.jcorpfin.2017.09.006.
   Web of Science ®Google Scholar
• Liou, H. M. 2011. “Wind Power in Taiwan: Policy and Development Challenges.” Energy Policy 39 (6): 3238–3251. doi:10.1016/j.enpol.2011.03.015.
   Web of Science ®Google Scholar
• Liu, W. S., and F. W. Agbola. 2014. “Regional Analysis of the Impact of Inward Foreign Direct Investment on Economic Growth in the Chinese Electronic Industry.” Applied Economics 46 (22–24): 2576–2592. doi:10.1080/00036846.2014.907478.
   Web of Science ®Google Scholar
• Marchica, M. T., and R. Mura. 2010. “Financial Flexibility, Investment Ability, and Firm Value: Evidence from Firms with Spare Debt Capacity.” Financial Management 39: 1339–1365. doi:10.1111/j.1755-053X.2010.01115.x.
   Web of Science ®Google Scholar
• Marjit, S., and A. Mukherjee. 2008. “International Outsourcing and R&D: Long-Run Implications for Consumers.” Review of International Economics 16 (5): 1010–1022. doi:10.1111/j.1467-9396.2008.00764.x.
   Web of Science ®Google Scholar
• Matsumura, T., N. Matsushima, and S. Cato. 2013. “Competitiveness and R&D Competition Revisited.” Economic Modelling 31: 541–547. doi:10.1016/j.econmod.2012.12.016.
   Web of Science ®Google Scholar
• Mazzucato, M., and S. Parris. 2015. “High-Growth Firms in Changing Competitive Environments: The US Pharmaceutical Industry (1963 to 2002).” Small Business Economics 44 (1): 145–170. doi:10.1007/s11187-014-9583-3.
   Web of Science ®Google Scholar
• Mohan, N. 2014. “A Review of the Gender Effect on Pay, Corporate Performance and Entry into Top Management.” International Review of Economics and Finance 34: 41–51. doi:10.1016/j.iref.2014.06.005.
   Web of Science ®Google Scholar
• Myers, S. C., and N. S. Majluf. 1984. “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have.” Journal of Financial Economics 13: 187–221. doi:10.1016/0304-405X(84)90023-0.
   Web of Science ®Google Scholar
• Serfling, M. A. 2014. “CEO Age and the Riskiness of Corporate Policies.” Journal of Corporate Finance 25: 251–273. doi:10.1016/j.jcorpfin.2013.12.013.
   Web of Science ®Google Scholar
• Tiwari, A. K., E. Abakah, A. Adewuvi, and C. C. Lee. 2022. “Quantile Risk Spillovers Between Energy and Agricultural Commodity Markets: Evidence from Pre and During COVID-19 Outbreak.” Energy Economics 113: 106235. doi:10.1016/j.eneco.2022.106235.
   Web of Science ®Google Scholar
• Valenzuela, P. 2015. “Rollover Risk and Credit Spreads: Evidence from International Corporate Bonds.” Review of Finance 20 (2): 631–661. doi:10.1093/rof/rfv022.
   Web of Science ®Google Scholar
• Veganzones-Varoudakis, M. -A., and P. Plane. 2019. “Innovation, Exports, Productivity and Investment Climate; a Study Based on Indian Manufacturing Firm-Level Data.” Applied Economics 51 (41): 4455–4476. doi:10.1080/00036846.2019.1591606.
   Web of Science ®Google Scholar
• Wang, C. W. 2022. “Debt Maturity Choice in CEOs’ Incentive to Signal Abilities.” Asia-Pacific Journal of Accounting & Economics 29 (3): 632–648. doi:10.1080/16081625.2020.1754258.
   Web of Science ®Google Scholar
• Wang, C. W., C. C. Lee, and M. C. Chen. 2022. “The Effects of Economic Policy Uncertainty and Country Governance on banks’ Liquidity Creation: International Evidence.” Pacific-Basin Finance Journal 71: 101708. doi:10.1016/j.pacfin.2022.101708.
   Web of Science ®Google Scholar
• Wang, C. W., and J. Y. Peng. 2021. “The Impact of Internal and External Factors on the Relationship Between Information Opacity and Open‐market Repurchases.” Accounting & Finance 61 (3): 4085–4118. doi:10.1111/acfi.12727.
   Web of Science ®Google Scholar
• Xu, C., and M. Yan. 2014. “Radical or Incremental Innovations: R&D Investment Around CEO Retirement.” Journal of Accounting, Auditing & Finance 29 (4): 547–576. doi:10.1177/0148558X14538970.
   Google Scholar
• Yahya, F., M. Li, C. C. Lee, M. Waqas, and S. Zhang. 2022. “Gender Diversity, Sustainability Reporting, CEO Overconfidence, and Efficient Risk-Taking: Evidence from South Asian Agri-Food Industry.” Canadian Journal of Agricultural Economics/Revue Canadienne d’agroeconomie 70: 219–238. (in press). doi:10.1111/cjag.12318.
   Web of Science ®Google Scholar
• Zhu, C., and C. C. Lee. 2022. “The Effects of Low-Carbon Pilot Policy on Technological Innovation: Evidence from Prefecture-Level Data in China.” Technological Forecasting & Social Change 183: 121955. doi:10.1016/j.techfore.2022.121955.
   Web of Science ®Google Scholar