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Journal articles
The impact of financial flexibility and directors’ academic experience on corporate R&D investments: a quantile regression approach
Abstract : This study investigates the impact of financial flexibility and academic experience of a firm’s board on corporate R&D investments in China. It also explores the moderating role of directors’ academic experience on the relationship between financial flexibility and R&D investments. We apply ordinary least square, fixed effects and quantile regression analysis using panel data of 2,195 A-share firms listed on Shanghai and Shenzhen stock exchanges during the period from 2011 to 2018. We find that both financial flexibility and directors’ academic experience promote R&D investments of Chinese non-financial firms. We also observe that directors’ academic experience weakens the positive impact of financial flexibility on R&D investments for firms operating in underdeveloped financial regions, whereas it strengthens the positive impact of financial flexibility on R&D investments for firms operating in developed financial regions. Our quantile regression results suggest that academic experience has a highly significant positive moderating impact on the financial flexibility of lower R&D investment firms relative to high R&D investment firms. These results are robust to alternate proxy of financial flexibility and endogeneity issues due to reverse causality.
https://hal-rennes-sb.archives-ouvertes.fr/hal-03602966
Contributor : Steven Gouin Connect in order to contact the contributor
Submitted on : Wednesday, March 9, 2022 - 3:23:23 PM
Last modification on : Thursday, March 10, 2022 - 3:03:28 AM
Contributor : Steven Gouin Connect in order to contact the contributor
Submitted on : Wednesday, March 9, 2022 - 3:23:23 PM
Last modification on : Thursday, March 10, 2022 - 3:03:28 AM