References
- Aboody, D., Hughes, J., Liu, J., & Su, W. (2008). Are executive stock option exercises driven by private information? Review of Accounting Studies, 13(4), 551–570. https://doi.org/https://doi.org/10.1007/s11142-007-9050-3
- Aboody, D., & Kasznik, R. (2000). CEO stock option awards and the timing of corporate voluntary disclosures. Journal of Accounting and Economics, 29(1), 73–100. https://doi.org/https://doi.org/10.1016/S0165-4101(00)00014-8
- Aggarwal, R. K., & Samwick, A. A. (1999). The other side of the trade-off: The impact of risk on executive compensation. Journal of Political Economy, 107(1), 65–105. https://doi.org/https://doi.org/10.1086/250051
- Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005). Competition and innovation: An inverted-U relationship. The Quarterly Journal of Economics, 120(2), 701–728. https://doi.org/https://doi.org/10.1093/qje/120.2.701
- Aghion, P., & Howitt, P. (2005). Growth with quality-improving innovations: An integrated framework. Handbook of Economic Growth, 1, 67–110. https://doi.org/https://doi.org/10.1016/S1574-0684(05)01002-6
- Alessandri, T. M., & Pattit, J. M. (2014). Drivers of R&D investment: The interaction of behavioral theory and managerial incentives. Journal of Business Research, 67(2), 151–158. https://doi.org/https://doi.org/10.1016/j.jbusres.2012.11.001
- Arellano, M. (2003). Panel data econometrics. Oxford university press.
- Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/https://doi.org/10.2307/2297968
- Azeez, A. (2015). Corporate governance and firm performance: Evidence from Sri Lanka. Journal of Finance, 3(1), 180–189. https://doi.org/https://doi.org/10.15640/jfbm.v3n1a16
- Baldwin, J. R., & Hanel, P. (2003). Innovation and knowledge creation in an open economy: Canadian industry and international implications. Cambridge University Press.
- Balkin, D. B., Markman, G. D., & Gomez-Mejia, L. R. (2000). Is CEO pay in high-technology firms related to innovation? Academy of Management Journal, 43(6), 1118–1129. https://doi.org/https://doi.org/10.5465/1556340
- Balsam, S., & Miharjo, S. (2007). The effect of equity compensation on voluntary executive turnover. Journal of Accounting and Economics, 43(1), 95–119. https://doi.org/https://doi.org/10.1016/j.jacceco.2006.09.004
- Baregheh, A., Rowley, J., & Hemsworth, D. (2016). The effect of organizational size and age on position and paradigm innovation. Journal of Small Business and Enterprise Development, 23(3), 768–789. https://doi.org/https://doi.org/10.1108/JSBED-06-2015-0065
- Bebchuk, L. A., & Fried, J. M. (2003). Executive compensation as an agency problem. Journal of Economic Perspectives, 17(3), 71–92. https://doi.org/https://doi.org/10.1257/089533003769204362
- Bebchuk, L. A., Fried, J. M., & Walker, D. I. (2002). Managerial power and rent extraction in the design of executive compensation (No. w9068). National Bureau of Economic Research.
- Becheikh, N., Landry, R., & Amara, N. (2006a). Lessons from innovation empirical studies in the manufacturing sector: A systematic review of the literature from 1993–2003. Technovation, 26(5/6), 644–664. https://doi.org/https://doi.org/10.1016/j.technovation.2005.06.016
- Belloc, F. (2012). Corporate governance and innovation: A survey. Journal of Economic Surveys, 26(5), 835–864. https://doi.org/https://doi.org/10.1111/j.1467-6419.2011.00681.x
- Bilbao-Osorio, B., & Rodríguez-Pose, A. (2004). From R&D to innovation and economic growth in the EU. Growth and Change, 35(4), 434–455. https://doi.org/https://doi.org/10.1111/j.1468-2257.2004.00256.x
- Bogliacino, F., Perani, G., Pianta, M., & Supino, S. (2012). Innovation and development: The evidence from innovation surveys. Latin American Business Review, 13(3), 219–261. https://doi.org/https://doi.org/10.1080/10978526.2012.730023
- Brisley, N. (2006). Executive stock options: Early exercise provisions and risk-taking incentives. The Journal of Finance, 61(5), 2487–2509. https://doi.org/https://doi.org/10.1111/j.1540-6261.2006.01064.x
- Chen, W. R. (2008). Determinants of firms’ backward-and forward-looking R&D search behavior. Organization Science, 19(4), 609–622. https://doi.org/https://doi.org/10.1287/orsc.1070.0320
- Chen, L. Y., Chen, Y. F., & Yang, S. Y. (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. https://doi.org/https://doi.org/10.1016/j.najef.2016.10.007
- Chen, V. Z., Li, J., & Shapiro, D. M. (2011). Are OECD-prescribed ‘good corporate governance practices’ really good in an emerging economy? Asia Pacific Journal of Management, 28(1), 115–138. https://doi.org/https://doi.org/10.1007/s10490-010-9206-8
- Chen, V. Z., Li, J., Shapiro, D. M., & Zhang, X. (2014). Ownership structure and innovation: An emerging market perspective. Asia Pacific Journal of Management, 31(1), 1–24. https://doi.org/https://doi.org/10.1007/s10490-013-9357-5
- Chen, W. R., & Miller, K. D. (2007). Situational and institutional determinants of firms R&D search intensity. Strategic Management Journal, 28(4), 369–381. https://doi.org/https://doi.org/10.1002/smj.594
- Cheng, S. (2004). R&D expenditures and CEO compensation. The Accounting Review, 79(2), 305–328. https://doi.org/https://doi.org/10.2308/accr.2004.79.2.305
- Claessens, S., Djankov, S., Fan, J. P., & Lang, L. H. (2002). Disentangling the incentive and entrenchment effects of large shareholdings. The Journal of Finance, 57(6), 2741–2771. https://doi.org/https://doi.org/10.1111/1540-6261.00511
- Core, J., & Guay, W. (1999). The use of equity grants to manage optimal equity incentive levels. Journal of Accounting and Economics, 28(2), 151–184. https://doi.org/https://doi.org/10.1016/S0165-4101(99)00019-1
- Core, J., & Guay, W. (2002). Estimating the value of employee stock option portfolios and their sensitivities to price and volatility. Journal of Accounting Research, 40(3), 613–630. https://doi.org/https://doi.org/10.1111/1475-679X.00064
- Corsino, M., & Gabriele, R. (2011). Product innovation and firm growth: Evidence from the integrated circuit industry. Industrial and Corporate Change, 20(1), 29–56. https://doi.org/https://doi.org/10.1093/icc/dtq050
- Crespi, G., & Zuniga, P. (2012). Innovation and productivity: Evidence from six Latin American countries. World Development, 40(2), 273–290. https://doi.org/https://doi.org/10.1016/j.worlddev.2011.07.010
- Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Prentice-Hall.
- Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of Management Journal, 34(3), 555–590. https://doi.org/https://doi.org/10.5465/256406
- Datta, D. K., Guthrie, J. P., & Wright, P. M. (2005). Human resource management and labor productivity: Does industry matter? Academy of Management Journal, 48(1), 135–145. https://doi.org/https://doi.org/10.5465/amj.2005.15993158
- Demirel, P., & Mazzucato, M. (2012). Innovation and firm growth: Is R&D worth it? Industry and Innovation, 19(1), 45–62. https://doi.org/https://doi.org/10.1080/13662716.2012.649057
- Dittmann, I., & Maug, E. (2007). Lower salaries and no options? On the optimal structure of executive pay. The Journal of Finance, 62(1), 303–343. https://doi.org/https://doi.org/10.1111/j.1540-6261.2007.01208.x
- Driver, C., & Guedes, M. J. C. (2017). R&D and CEO departure date: Do financial incentives make CEOs more opportunistic? Industrial and Corporate Change, 26(5), 801–820. https://doi.org/https://doi.org/10.1093/icc/dtx009
- Du, J., Zheng, Q., & Chang, X. (2020). Dynamic process: International diversification and innovation performance from emerging economies. Asian Journal of Technology Innovation, 28, 234–250. https://doi.org/https://doi.org/10.1080/19761597.2020.1726781
- Ehie, I. C., & Olibe, K. (2010). The effect of R&D investment on firm value: An examination of US manufacturing and service industries. International Journal of Production Economics, 128(1), 127–135. https://doi.org/https://doi.org/10.1016/j.ijpe.2010.06.005
- Erickson, M., Hanlon, M., & Maydew, E. L. (2006). Is there a link between executive equity incentives and accounting fraud? Journal of Accounting Research, 44(1), 113–143. https://doi.org/https://doi.org/10.1111/j.1475-679X.2006.00194.x
- Ericson, R., & Pakes, A. (1995). Markov-perfect industry dynamics: A framework for empirical work. The Review of Economic Studies, 62(1), 53–82. https://doi.org/https://doi.org/10.2307/2297841
- Faccio, M., Lang, L. H. P., & Young, L. (2001). Dividends and expropriation. American Economic Review, 91(1), 54–78. https://doi.org/https://doi.org/10.1257/aer.91.1.54
- Fama, E. F., & Jensen, M. C. (1983). Agency problems and residual claims. The Journal of Law and Economics, 26(2), 327–349. https://doi.org/https://doi.org/10.1086/467038
- Fan, J. P., & Wong, T. J. (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Economics, 33(3), 401–425. https://doi.org/https://doi.org/10.1016/S0165-4101(02)00047-2
- Filippetti, A., & Archibugi, D. (2011). Innovation in times of crisis: National systems of innovation, structure, and demand. Research Policy, 40(2), 179–192. https://doi.org/https://doi.org/10.1016/j.respol.2010.09.001
- Frank, A. G., Cortimiglia, M. N., Ribeiro, J. L. D., & de Oliveira, L. S. (2016). The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies. Research Policy, 45(3), 577–592. https://doi.org/https://doi.org/10.1016/j.respol.2015.11.011
- García-Manjón, J. V., & Romero-Merino, M. E. (2012). Research, development, and firm growth. Empirical evidence from European top R&D spending firms. Research Policy, 41(6), 1084–1092. https://doi.org/https://doi.org/10.1016/j.respol.2012.03.017
- Gaver, J. J., & Gaver, K. M. (1995). Compensation policy and the investment opportunity set. Financial Management, 24(1), 19–32. https://doi.org/https://doi.org/10.2307/3665874
- Geiger, S. W., & Cashen, L. H. (2002). A multidimensional examination of slack and its impact on innovation. Journal of Managerial Issues, 14(1), 68–84. https://www.jstor.org/stable/40604374
- Goedhuys, M., & Veugelers, R. (2012). Innovation strategies, process and product innovations and growth: Firm-level evidence from Brazil. Structural Change Economic Dynamics, 23(4), 516–529. https://doi.org/https://doi.org/10.1016/j.strueco.2011.01.004
- Gopalan, R., Udell, G. F., & Yerramilli, V. (2011). Why do firms form new banking relationships? Journal of Financial and Quantitative Analysis, 46(5), 1335–1365. https://doi.org/https://doi.org/10.1017/S0022109011000299
- Greve, H. R. (2003). A behavioral theory of R&D expenditures and innovations: Evidence from shipbuilding. Academy of Management Journal, 46(6), 685–702. https://doi.org/https://doi.org/10.5465/30040661
- Hansen, B. E. (1999). Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93(2), 345–368. https://doi.org/https://doi.org/10.1016/S0304-4076(99)00025-1
- Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica: Journal of the Econometric Society, 50, 1029–1054. https://doi.org/https://doi.org/10.2307/1912775
- Henderson, A. D., & Fredrickson, J. W. (1996). Information-processing demands as a determinant of CEO compensation. Academy of Management Journal, 39(3), 575–606. https://doi.org/https://doi.org/10.5465/256656
- Heugens, P. P., Van Essen, M., & van Oosterhout, J. H. (2009). Meta-analyzing ownership concentration and firm performance in Asia: Towards a more fine-grained understanding. Asia Pacific Journal of Management, 26(3), 481–512. https://doi.org/https://doi.org/10.1007/s10490-008-9109-0
- Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831–880. https://doi.org/https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
- Johnson, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2000). Tunneling. American Economic Review, 90(2), 22–27. https://doi.org/https://doi.org/10.1257/aer.90.2.22
- Kang, T., Baek, C., & Lee, J. D. (2018). R&D activities for becoming a high-growth firm through large jumps: Evidence from Korean manufacturing. Asian Journal of Technology Innovation, 26(02), 222–245. https://doi.org/https://doi.org/10.1080/19761597.2018.1520604
- Kim, H., Kim, H., & Lee, P. M. (2008). Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organization Science, 19(3), 404–418. https://doi.org/https://doi.org/10.1287/orsc.1080.0360
- Kim, W. C., & Mauborgne, R. (2019). Nondisruptive creation: Rethinking innovation and growth. MIT Sloan Management Review, 60(3), 46–55. https://mitsmr.com/2txDu6Y
- Laforet, S. (2013). Organizational innovation outcomes in SMEs: Effects of age, size, and sector. Journal of World Business, 48(4), 490–502. https://doi.org/https://doi.org/10.1016/j.jwb.2012.09.005
- Larraza-Kintana, M., Wiseman, R. M., Gomez-Mejia, L. R., & Welbourne, T. M. (2007). Disentangling compensation and employment risks using the behavioral agency model. Strategic Management Journal, 28(10), 1001–1019. https://doi.org/https://doi.org/10.1002/smj.624
- Latham, S. F., & Braun, M. (2009). Managerial risk, innovation, and organizational decline. Journal of Management, 35(2), 258–281. https://doi.org/https://doi.org/10.1177/0149206308321549
- Laux, C., & Laux, V. (2009). Board committees, CEO compensation, and earnings management. The Accounting Review, 84(3), 869–891. https://doi.org/https://doi.org/10.2308/accr.2009.84.3.869
- Lee, S. (2015). Slack and innovation: Investigating the relationship in Korea. Journal of Business Research, 68(9), 1895–1905. https://doi.org/https://doi.org/10.1016/j.jbusres.2014.12.009
- Lee, P. M., & O’Neill, H. M. (2003). Ownership structures and R&D investments of U.S. and Japanese firms: Agency and stewardship perspectives. Academy of Management Journal, 46(2), 212–225. https://doi.org/https://doi.org/10.5465/30040615
- Lerner, J., & Wulf, J. (2007). Innovation and incentives: Evidence from corporate R&D. The Review of Economics and Statistics, 89(4), 634–644. https://doi.org/https://doi.org/10.1162/rest.89.4.634
- Levinthal, D. A., & March, J. G. (1981). A model of adaptive organizational search. Journal of Economic Behavior and Organization, 2(4), 307–333. https://doi.org/https://doi.org/10.1016/0167-2681(81)90012-3
- Li, Y., Guo, H., Yi, Y., & Liu, Y. (2010). Ownership concentration and product innovation in Chinese firms: The mediating role of learning orientation. Management and Organization Review, 6(1), 77–100. https://doi.org/https://doi.org/10.1111/j.1740-8784.2009.00162.x
- Li, Y., Lou, F., Wang, J., & Yuan, H. (2013). A survey of executive compensation contracts in China’s listed companies. China Journal of Accounting Research, 6(3), 211–231. https://doi.org/https://doi.org/10.1016/j.cjar.2013.06.001
- Lin, C., Lin, P., Song, F. M., & Li, C. (2011). Managerial incentives, CEO characteristics and corporate innovation in China’s private sector. Journal of Comparative Economics, 39(2), 176–190. https://doi.org/https://doi.org/10.1016/j.jce.2009.12.001
- Lukach, R., Kort, P. M., & Plasmans, J. (2007). Optimal R&D investment strategies under the threat of new technology entry. International Journal of Industrial Organization, 25(1), 103–119. https://doi.org/https://doi.org/10.1016/j.ijindorg.2006.02.002
- Makri, M., Lane, P. J., & Gomez-Mejia, L. R. (2006). CEO incentives, innovation, and performance in technology-intensive firms: A reconciliation of outcome and behavior based incentive schemes. Strategic Management Journal, 27(11), 1057–1080. https://doi.org/https://doi.org/10.1002/smj.560
- March, J. G. (1981). Footnotes to organizational change. Administrative Science Quarterly, 26(4), 563–577. https://doi.org/https://doi.org/10.2307/2392340
- Nobanee, H., & Abraham, J. (2017). The impact of free cash flow, equity concentration and agency costs on firm’s profitability. Investment Management and Financial Innovations, 14(2), 19–26. https://doi.org/https://doi.org/10.21511/imfi.14(2).2017.02
- Nohria, N., & Gulati, R. (1996). Is slack good or bad for innovation? Academy of Management Journal, 39(5), 1245–1264. https://doi.org/https://doi.org/10.5465/256998
- Panousi, V., & Papanikolaou, D. (2012). Investment, idiosyncratic risk, and ownership. The Journal of Finance, 67(3), 1113–1148. https://doi.org/https://doi.org/10.1111/j.1540-6261.2012.01743.x
- Peng, L., & Roell, A. (2008). Manipulation and equity-based compensation. American Economic Review, 98(2), 285–290. https://doi.org/https://doi.org/10.1257/aer.98.2.285
- Raffo, J., Lhuillery, S., & Miotti, L. (2008). Northern and southern innovativtiy: A comparison across European and Latin American countries. The European Journal of Development, 20(2), 219–239. https://doi.org/https://doi.org/10.1080/09578810802060777
- Raymond, L., & St-Pierre, J. (2010). R&D as a determinant of innovation in manufacturing SMEs: An attempt at empirical clarification. Technovation, 30(1), 48–56. https://doi.org/https://doi.org/10.1016/j.technovation.2009.05.005
- Roodman, D. (2006). How to do xtabond2. North American Stata Users’ Group Meetings No. 8. Stata Users Group.
- Roodman, D. (2009). A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1), 135–158. https://doi.org/https://doi.org/10.1111/j.1468-0084.2008.00542.x
- Ryan Jr., H. E., & Wiggins III, R. A. (2002). The interactions between R&D investment decisions and compensation policy. Financial Management, 31(1), 5–29. doi:https://doi.org/10.2307/3666319
- Santi, C., & Santoleri, P. (2017). Exploring the link between innovation and growth in Chilean firms. Small Business Economics, 49(2), 445–467. https://doi.org/https://doi.org/10.1007/s11187-016-9836-4
- Santos, D. F. L., Basso, L. F. C., Kimura, H., & Kayo, E. K. (2014). Innovation efforts and Smith performances of Brazilian firms. Journal of Business Research, 67(4), 527–535. https://doi.org/https://doi.org/10.1016/j.jbusres.2013.11.009
- Sauerwald, S., & Peng, M. W. (2013). Informal institutions, shareholder coalitions, and principal–principal conflicts. Asia Pacific Journal of Management, 30(3), 853–870. https://doi.org/https://doi.org/10.1007/s10490-012-9312-x
- Singh, J. V. (1986). Performance, slack, and risk taking in organizational decision making. Academy of Management Journal, 29(3), 562–585. https://doi.org/https://doi.org/10.5465/256224
- Tien, C., & Chen, C. N. (2012). Myth or reality? Assessing the moderating role of CEO compensation on the momentum of innovation in R&D. The International Journal of Human Resource Management, 23(13), 2763–2784. https://doi.org/https://doi.org/10.1080/09585192.2011.637059
- Trajtenberg, M. (1990). Economic analysis of product innovation. Cambridge University.
- Tsao, S. M., Lin, C. H., & Chen, V. Y. S. (2015). Family ownership as a moderator between R&D investments and CEO compensation. Journal of Business Research, 68(3), 599–606. https://doi.org/https://doi.org/10.1016/j.jbusres.2014.09.001
- Volpin, P. F. (2002). Governance with poor investor protection: Evidence from top executive turnover in Italy. Journal of Financial Economics, 64(1), 61–90. https://doi.org/https://doi.org/10.1016/S0304-405X(02)00071-5
- Weeds, H. (2002). Strategic delay in a real options model of R&D competition. The Review of Economic Studies, 69(3), 729–747. https://doi.org/https://doi.org/10.1111/1467-937X.t01-1-00029
- Williams, M. A., & Rao, R. P. (2006). CEO stock options and equity risk incentives. Journal of Business Finance & Accounting, 33(1–2), 26–44. https://doi.org/https://doi.org/10.1111/j.1468-5957.2006.01357.x
- Wiseman, R. M., & Gomez-Mejia, L. R. (1998). A behavioral agency model of firm risk-taking. Academy of Management Review, 23(1), 133–154. https://doi.org/https://doi.org/10.5465/amr.1998.192967
- Wright, P., Ferris, S. P., Sarin, A., & Awasthi, V. (1996). Impact of corporate insider, blockholder, and institutional equity ownership on firm risk taking. Academy of Management Journal, 39(2), 441–458. https://doi.org/https://doi.org/10.5465/256787
- Wu, J., & Tu, R. (2007). CEO stock option pay and R&D spending: A behavioral agency explanation. Journal of Business Research, 60(5), 482–492. https://doi.org/https://doi.org/10.1016/j.jbusres.2006.12.006
- Yoshikawa, T., Rasheed, A. A., & Del Brio, E. B. (2010). The impact of firm strategy and foreign ownership on executive bonus compensation in Japanese firms. Journal of Business Research, 63(11), 1254–1260. https://doi.org/https://doi.org/10.1016/j.jbusres.2010.06.012
- Zattoni, A., & Minichilli, A. (2009). The diffusion of equity incentive plans in Italian listed companies: What is the trigger? Corporate Governance: An International Review, 17(2), 224–237. https://doi.org/https://doi.org/10.1111/j.1467-8683.2009.00732.x
- Zhou, K. Z., Gao, G. Y., & Zhao, H. (2017). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404. https://doi.org/https://doi.org/10.1177/0001839216674457