歡迎來到文藻W-Portfolio

論文名稱	The interaction of corporate governance and R&D: Evidence from panel
研討會開始日期	2012-04-13
研討會結束日期	2012-04-13
所有作者	王立勳、陳賢名、陳振宇、林楚雄
作者順序	第一作者
通訊作者	是
研討會名稱	2012 南台灣財金學術聯盟年會暨海峽兩岸學術論文研討會
是否具有對外公開徵稿及審稿制度	是
研討會舉行之國家	NATTWN-中華民國
研討會舉行之城市	高雄
發表年份	2012
所屬計劃案	無
可公開文檔
可公開文檔
可公開文檔

[摘要] :
R&D plays essentially in increasing firm's growth and competitiveness. However, not all the R&D activities incur pleasing outcome. In this study, we try to investigate whether the corporate governance enhance investors' confidence on R&D expenditure, consequently leading to positive market reaction. Using the unbalanced panel data from January 1998 to December 2010 with the fixed effect panel model, this study examines the interaction effect of firm's R&D and the corporate governance on stock prices of Taiwan public firms. Initially, we find that market reacts conservatively to electronic firms (R&D-oriented firms) and positively to non-electronic firms. While the quality of corporate governance is taken into consideration, the interaction between corporate governance and R&D is found to associate positively with stock return in electronic industry. Whereas, no significant relation is found for those non-electronic firms. We suggest that investors might regard R&D as a substitution of corporate governance mechanism in non-electronic industries based on the agency cost hypothesis and the corporate governance enhancing the confidence of investors on R&D activity in electronic industry.

[英文摘要] :
R&D plays essentially in increasing firm's growth and competitiveness. However, not all the R&D activities incur pleasing outcome. In this study, we try to investigate whether the corporate governance enhance investors' confidence on R&D expenditure, consequently leading to positive market reaction. Using the unbalanced panel data from January 1998 to December 2010 with the fixed effect panel model, this study examines the interaction effect of firm's R&D and the corporate governance on stock prices of Taiwan public firms. Initially, we find that market reacts conservatively to electronic firms (R&D-oriented firms) and positively to non-electronic firms. While the quality of corporate governance is taken into consideration, the interaction between corporate governance and R&D is found to associate positively with stock return in electronic industry. Whereas, no significant relation is found for those non-electronic firms. We suggest that investors might regard R&D as a substitution of corporate governance mechanism in non-electronic industries based on the agency cost hypothesis and the corporate governance enhancing the confidence of investors on R&D activity in electronic industry.

[參考文獻] :
Abdullah, S.N., 2004. Performance among Malaysian listed companies. Corporate Governance 4, 47-61.
Bebchuk, L.A., Alma, C., and Ferrell, A., 2009. What matters in corporate governance? Review of Financial Study 22, 783-827.
Burns, N., Kedia, S., Lipson, M., 2010. Institutional ownership and monitoring: Evidence from financial misreporting. Journal of Corporate Finance 16, 443-455.
Cameron, G., 2000. R&D and growth at the industry level. Nuffield Colldge Economic Papers 2000-W4. University of Oxford, UK.
Chan, L.K.C., Lakonishok, J., and Sougiannis, T., 2001. The stock market valuation of research and development expenditures. Journal of Finance 56, 2431-2456.
Chan, S.H., Martin, J.D., Kensinger, J.W., 1990. Corporate research and development expenditure and share value. Journal of Financial Economics 26, 255-276.
Chen, A., Kao, L., Tsao, M., Wu, C., 2007. Building a corporate governance index from the perspectives of ownership and leadership for firms in Taiwan. Corporate Governance: An International Review 15, 251-261.
Chung, K.H., Wright, P., Charoenwong, C., 1998. Investment opportunities and market reaction to capital expenditure decisions. Journal of Banking and Finance 22, 41-60.
Coles, J.L., Daniel, N.D., and Naveen, L., 2008. Boards: Does one size fits all. Journal of Financial Economics 87, 329-356.
Cruz-Cázares, C., Bayona-Sáez, and García-Marco, T., 2010. R&D strategies and firm innovative performance: A panel data analysis. International Journal of Innovation Management 14, 1013-1045.
Gillan, S., Starks, L., 2000. Corporate governance proposals and shareholder activism: the role of institutional investors. Journal of Financial Economics 57, 275-305.
Gompers, Pl, Ishii, J., and Metrick, A., 2003. Corporate governance and equity prices. Quartly Journal of Economics 118, 107-155.
Guo, R., Lev, B., and Shi, C., 2006. Explaining the short- and long-term IPO anomalies in the US by R&D. Journal of Business Finance and Accounting 33, 550-579.
Jensen, M.C., 1993. The modern industrial revolution, exit, and the failure of internal control systems. Journal of finance 48, 831-880.
Jensen, M.C., and Meckling, W.H., 1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics 3, 305-360.
John, K., and Senbet, L. W., 1998. Corporate governance and board effectiveness. Journal of Banking and Finance 22, 371-403.
Kafouros, M.I., 2005. R&D and productivity growth: Evidence from the UK. Economics and Innovations and New Technology 14, 479-497.
Kallunki, J., Pyykkö, E., and Laamanen, T., Stock market valuation, profitability and R&D spending of the firm: The effect of technology mergers and acquisitions. Journal of Business Finance and Accounting 36, 838-862.
Lipton, M., and Lorsch, J.W., 1992. A modest proposal for improved corporate governance. Business Lawyer 48, 59-77.
Lundstrum, L.L., 2002. Corporate investment myopia: a horserace of the theories. Journal of Corporate Finance 8, 353-371.
Nam, J., Ottoo, R.E., and Thornton, J.H., 2003. The effect of managerial incentives to bear risk on corporate capital structure and R&D investment. The Financial Review 38, 77-101.
Palmon, O, and Wald, J.K., 2002. Are two heads better than one? The impact of changes in management structure on performance by firm size. Journal of Corporate Finance 8, 213-226.
Parrino, R., Sias, R., Starks, L., 2003. Voting with their feet: institutional ownership changes around forced CEO turnover. Journal of Financial Economics 68, 3-46.
Ryan, H.E., and Wiggins, R.A., 2002. The interactions between R&D investment decisions and compensation policy. Financial Management 31, 5-29.
Schmiedeberg, C., 2008. Complementarities of innovation activities: An empirical analysis of the German manufacturing sector. Research Policy 37, 1492-1503.
Veugelers, R., and Cassiman, B., 2006. In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition. Management Science 52, 68-82.
Wahal, S., and McConnell, J.J., 2000. Do institutional investors exacerbate managerial myopia? Journal of Corporate Finance 6, 307-329.
Wright, P., Kroll, M., Mukherji, A, and Pettus, M.L., 2009. Do the contingencies of external monitoring, ownership incentives, or free cash flow explain opposing firm performance expectations? Journal of Management and Governance 13, 215-243.
Xu, B., 2006. R&D progress, stock price volatility, and post-announcement drift: An empirical investigation into biotech firm. Review of Quantitative Finance and Accounting 26, 391-408.
Xu, B., Magnan, M.L., and André, P.E., 2007. The stock market valuation of R&D information in Biotech firms. Contemporary Accounting Research 24, 1291-1318.
Yermack, D., 1996. Higher market valuation of companies with a small board of directors. Journal of Financial Economics 40, 185-211.