2,878
Views
5
CrossRef citations to date
0
Altmetric
ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS

Does state ownership affect R&D investments? Evidence from China

&
Article: 2095888 | Received 06 May 2022, Accepted 25 Jun 2022, Published online: 06 Jul 2022

References

  • Reuters. (2017). China spends $279 bln on R&D in 2017. Science Minister.
  • Aguilera, R., Duran, P., Heugens, P. P. M. A. R., Sauerwald, S., Turturea, R., & VanEssen, M. (2021). State ownership, political ideology, and firm performance around the world. Journal of World Business, 56(1), 101113. doi:10.1016/j.jwb.2020.101113
  • Allen, F., Qian, J., & Qian, M. (2005). Law, finance, and economic growth in China. Journal of Financial Economics, 77(1), 57–14. doi:10.1016/j.jfineco.2004.06.010
  • Barker, V. L., III, & Mueller, G. C. (2002). CEO characteristics and firm R&D spending. Management Science, 48(6), 782–801.
  • Berglof, E., & Roland, G. (1998). Soft budget constraints and banking in transition economies. Journal of Comparative Economics, 26(1), 18–40. doi:10.1006/jcec.1997.1510
  • Boeker, W. (1997). Strategic change: The influence of managerial characteristics and organizational growth. Academy of Management Journal, 40(1), 152–170. doi:10.5465/257024
  • Boubakri, N., Cosset, J. C., Guedhami, O., & Saffar, W. (2011). The political economy of residual state ownership in privatized firms: Evidence from emerging markets. Journal of Corporate Finance, 17(2), 244–258.
  • Bravo, F, & Reguera‐Alvarado, N. (2017). The effect of board of directors on R&D intensity: board tenure and multiple directorships. R&D Management, 47 (5), 701–714. doi:10.1111/radm.12260
  • Cao, X., Cumming, D., & Zhou, S. (2020). State ownership and corporate innovative efficiency. Emerging Markets Review, 44(100699). doi:10.1016/j.ememar.2020.100699
  • Chang, S. J., Chung, C. N., & Mahmood, I. P. (2006). When and how does business group affiliation promote firm innovation? A tale of two emerging economies. Organization Science, 17(5), 637–656. doi:10.1287/orsc.1060.0202
  • Chen, G., Firth, M., & Xu, L. (2009). Does the type of ownership control matter? Evidence from China’s listed companies. Journal of Banking & Finance, 33(1), 171–181. doi:10.1016/j.jbankfin.2007.12.023
  • Chen, S., Sun, Z., Tang, S., & Wu, D. (2011). Government intervention and investment efficiency: Evidence from China. Journal of Corporate Finance, 17(2), 259–271. doi:10.1016/j.jcorpfin.2010.08.004
  • Chen, H., Hsiu‐Ching Ho, M., & Hsu, W. (2013). Does board social capital influence chief executive officers’ investment decisions in research and development?. R&D Management, 43(4), 381–393. doi:10.1111/radm.12025
  • Chen, H. L. (2013). CEO tenure and R&D investment: The moderating effect of board capital. The Journal of Applied Behavioral Science, 49(4), 437–459. doi:10.1177/0021886313485129
  • Cheng, Z., Fleming, G., & Liu, Z. (2017). Financial constraints and investment thirst in Chinese reverse merger companies. Accounting and Finance, 57(5), 1315–1347. doi:10.1111/acfi.12324
  • Chung, K. H., Wright, P., & Kedia, B. (2003). Corporate governance and market valuation of capital and R&D investments. Review of Financial Economics, 12(2), 161–172. doi:10.1016/S1058-3300(02)00063-0
  • Coad, A., Segarra, A., & Teruel, M. (2016). Innovation and firm growth: Does firm age play a role?. Research Policy, 45(2), 387–400. doi:10.1016/j.respol.2015.10.015
  • Cohen, W. M. 2010. Fifty years of empirical studies of innovative activity and performance. B. H. Hall & N. Rosenberg Eds. Handbook of the Economics of Innovation. Vol. 1. 1 129–213. Blackwell: Oxford.
  • Coles, J. L., Daniel, N. D., & Naveen, L. (2006). Managerial incentives and risk-taking. Journal of Financial Economics, 79(2), 431–468. doi:10.1016/j.jfineco.2004.09.004
  • Connelly, B. L., Hoskisson, R. E., Tihanyi, L, & Certo, S. T. (2010). Ownership as a form of corporate governance. Journal of Management Studies, 47(8), 1561–1589. doi:10.1111/j.1467-6486.2010.00929.x
  • Cull, R., Li, W., Sun, B., & Xu, L. C. (2015). Government connections and financial constraints: Evidence from a large representative sample of Chinese firms. Journal of Corporate Finance, 32, 271–294. doi:10.1016/j.jcorpfin.2014.10.012
  • Dalziel, T., Gentry, R. J., & Bowerman, M. (2011). An integrated agency–resource dependence view of the influence of directors’ human and relational capital on firms’ R&D spending. Journal of Management Studies, 48(6), 1217–1242. doi:10.1111/j.1467-6486.2010.01003.x
  • Fan, S., & Wang, C. (2021). Firm age, ultimate ownership, and R&D investments. International Review of Economics & Finance, 76, 1245–1264. doi:10.1016/j.iref.2019.11.012
  • Fang, L., Lerner, J., Wu, C., & Zhang, Q. (2018). Corruption, government subsidies, and innovation: Evidence from China (No. w25098). National Bureau of Economic Research.
  • Finkelstein, S. (1992). Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35(3), 505–538. doi:10.5465/256485
  • Fu, T., Jian, Z., & Li, Y. (2021). How state ownership affects corporate R&D: An inverted‐U‐shaped relationship. International Journal of Finance & Economics. in press. 10.1002/ijfe.2589
  • Griliches, Z. (1979). Issues in assessing the contribution of research and development to productivity growth. The Bell Journal of Economics, 10(1), 92–116. doi:10.2307/3003321
  • Grøgaard, B., Rygh, A., & Benito, G. R. (2019). Bringing corporate governance into internalization theory: State ownership and foreign entry strategies. Journal of International Business Studies, 50(8), 1310–1337. doi:10.1057/s41267-019-00237-5
  • Guldiken, O., & Darendeli, I. S. (2016). Too much of a good thing: Board monitoring and R&D investments. Journal of Business Research, 69(8), 2931–2938. doi:10.1016/j.jbusres.2015.12.062
  • Han, J., Bose, I., Hu, N., Qi, B., & Tian, G. (2015). Does director interlock impact corporate R&D investment? Decision Support Systems, 71, 28–36.
  • Hess, K., Gunasekarage, A., & Hovey, M. (2010). State‐dominant and non‐state‐dominant ownership concentration and firm performance: Evidence from China. International Journal of Managerial Finance, 6(4), 264–289. doi:10.1108/17439131011074440
  • Hillman, A. J., Shropshire, C., Certo, S. T., Dalton, D. R., & Dalton, C. M. (2011). What I like about you: A multilevel study of shareholder discontent with director monitoring. Organization Science, 22(3), 675–687. doi:10.1287/orsc.1100.0542
  • Himmelberg, C., & Petersen, B. (1994). R&D and internal finance: A panel study of small firms in high-tech industries. Review of Economics and Statistics, 76(1), 38–51. doi:10.2307/2109824
  • Honore, F., Munari, F., & de La Potterie, B. (2015). Corporate governance practices and companies’ R&D intensity: Evidence from European countries. Research Policy, 44(2), 533–543. doi:10.1016/j.respol.2014.10.016
  • Hoskisson, R. E., & Hitt, M. A. (1988). Strategic control systems and relative R&D investment in large multiproduct firms. Strategic Management Journal, 9(6), 605–621.
  • 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. doi:10.1016/0304-405X(76)90026-X
  • Jiang, F., Shi, W., & Zheng, X. (2020). Board chairs and R&D investment: Evidence from Chinese family-controlled firms. Journal of Business Research, 112(1), 109–118. doi:10.1016/j.jbusres.2020.02.026
  • Kao, L., & Chen, A. (2020). CEO characteristics and R&D expenditure of IPOs in emerging markets: Evidence from Taiwan. Asia Pacific Management Review, 25(4), 189–197. doi:10.1016/j.apmrv.2020.01.001
  • Konno, Y., Itoh, Y., & Wu, H.-C. (2018). Empirical analysis of R&D in the Japanese construction industry based on the structure conduct performance model. Cogent Business & Management, 5(1), 1429347. doi:10.1080/23311975.2018.1429347
  • Kor, Y. Y. (2006). Direct and interaction effects of top management team and board compositions on R&D investment strategy. Strategic Management Journal, 27(11), 1081–1099. doi:10.1002/smj.554
  • Kor, Y. Y., & Sundaramurthy, C. (2009). Experience-based human capital and social capital of outside directors. Journal of Management, 35(4), 981–1006. doi:10.1177/0149206308321551
  • Kuo, H. C., Wang, L. H., & Yeh, L. J. (2018). The role of education of directors in influencing firm R&D investment. Asia Pacific Management Review, 23(2), 108–120. doi:10.1016/j.apmrv.2017.05.002
  • Lee, P. M., & O’neill, H. M. (2003). Ownership structures and R&D investments of US and Japanese firms. Academy of Management Journal, 46(2), 212–225. doi:10.5465/30040615
  • Liao, L., Liu, B., & Wang, H. (2014). China’ s secondary privatization: Perspectives from the split-share structure reform. Journal of Financial Economics, 113(3), 500–518. https://doi.org/10.1016/j.jfineco.2014.05.007
  • Liu, G. S., & Sun, P. (2005). Ownership and control of Chinese public corporations: a state-dominated corporate governance system. Corporate Governance: Accountability Enterprise and International Comparisons, 389–414. Chichester: John Wiley and Sons.
  • Luo, Y. (2003). Industrial dynamics and managerial networking in an emerging market: The case of China. Strategic Management Journal, 24(13), 1315–1327. doi:10.1002/smj.363
  • Mairesse, J., & Mohnen, P. (2002). Accounting for innovation and measuring innovativeness: An illustrative framework and an application. The American Economic Review, 92 (2), 226–230.
  • Megginson, W. L., & Netter, J. M . (2001). From state to market: A survey of empirical studies on privatization. Journal of Economic Literature, 39(2), 321–389. doi:10.1257/jel.39.2.321
  • Munari, F. (2002). The effects of privatization on corporate r&d units: Evidence from Italy and France. R & D Management, 32(3), 223–232. doi:10.1111/1467-9310.00255
  • Ng, A., Yuce, A., & Chen, E. (2009). Determinants of state equity ownership, and its effect on value/performance: China’s privatized firms. Pacific-Basin Finance Journal, 17(4), 413–443. doi:10.1016/j.pacfin.2008.10.003
  • Rothwell, R. (1994). Issues in user–producer relations in the innovation process: the role of government. International Journal of Technology Management, 9(5–7), 629–649.
  • Sapienza, P. (2004). The effects of government ownership on bank lending. Journal of Financial Economics, 72(2), 357–384. doi:10.1016/j.jfineco.2002.10.002
  • Sappington, D. E., & Stiglitz, J. E. (1987). Privatization, information and incentives. Journal of policy Analysis and Management, 6(4), 567–585. doi:10.2307/3323510
  • Shleifer, A. (1998). State versus private ownership. Journal of Economic Perspective, 12(4), 133–150. doi:10.1257/jep.12.4.133
  • Sindhu, M. I., Hashmi, S. H., Ul Haq, E., & Ntim, C. G. (2016). Impact of ownership structure on dividend payout in Pakistani non-financial sector. Cogent Business & Management, 3(1), 1272815. doi:10.1080/23311975.2016.1272815
  • Teng, D., & Yi, J. (2017). Impact of ownership types on R&D intensity and innovation performance-evidence from transitional China. Frontiers of Business Research in China, 11(1), 1–25.
  • Tonurist, P., & Karo, E. (2016). State owned enterprises as instruments of innovation policy. Annals of Public and Cooperative Economics, 87(4), 623–648. doi:10.1111/apce.12126
  • Tribo, J. A., Berrone, P., & Surroca, J. (2007). Do the type and number of blockholders influence R&D investments? New evidence from Spain. Corporate Governance: An International Review, 15(5), 828–842. doi:10.1111/j.1467-8683.2007.00622.x
  • Tsai, B. H. (2012). Political interference and earnings manipulation in Chinese firms. The Chinese Economy, 45(6), 84–102. doi:10.2753/CES1097-1475450605
  • Vafeas, N. (1999). Board meeting frequency and firm performance. Journal of Financial Economics, 53(1), 113–142. doi:10.1016/S0304-405X(99)00018-5
  • Van Vo, L., & Le, H. T. T. (2017). Strategic growth option, uncertainty, and R&D investment. International Review of Financial Analysis, 51, 16–24.
  • 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.
  • Wu, H., Li, S., Ying, S. X., & Chen, X. (2018). Politically connected CEOs, firm performance, and CEO pay. Journal of Business Research, 91, 169–180. doi:10.1016/j.jbusres.2018.06.003
  • Yi, J., Hong, J., Chung Hsu, W., & Wang, C. (2017). The role of state ownership and institutions in the innovation performance of emerging market enterprises: Evidence from China. Technovation, 62, 4–13. doi:10.1016/j.technovation.2017.04.002
  • Yoo, T., & Sung, T. (2015). How outside directors facilitate corporate R&D investment? Evidence from large Korean firms. Journal of Business Research, 68(6), 1251–1260. doi:10.1016/j.jbusres.2014.11.005
  • Zeng, T., & Lin, H. (2011). Ownership structure and R&D spending: evidence from China’s listed firms. Chinese Management Studies, 5(1), 82–93. doi:10.1108/17506141111118471
  • 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. doi:10.1177/0001839216674457