OWNERSHIP STRUCTURE AND R&D SPENDING: EVIDENCE FROM BORSA ISTANBUL

Year 2018, , 67 - 80, 01.01.2018

Mesut Doğan Murad Tirkakioğlu

https://doi.org/10.17130/ijmeb.2018137574

Cited By: 4

Abstract

This paper examines the effects of ownership structure on firms’ R&D spending. In other words, this paper seeks to examine the effect of ownership concentration, institutional ownership and foreign ownership on the R&D spending practices. It is used a sample of 112 Turkish manufacturing firms listed Borsa Istanbul from 2009-2015. It is found that firms with foreign ownership have lower R&D spending.Foreign investors would utilize technological advantages at their home countries and/or other developed economies

Keywords

R&D, Innovation, Ownership Structure

SAHİPLİK YAPISI VE AR-GE HARCAMALARI: BORSA İSTANBUL ÖRNEĞİ

Abstract

Bu çalışmanın amacı sahiplik yapısının AR-GE harcamaları üzerindeki etkisini incelemektir. Başka bir ifade ile araştırmada; sahiplik yoğunlaşmasının, kurumsal yatırımcı sahipliğinin ve yabancı yatırımcı sahipliğinin AR-GE uygulamaları üzerindeki etkisi tespit edilecektir. Çalışmada 2009-2015 yılları arasında Borsa İstanbul’a kayıtlı 112 imalat sanayi firmasının verileri kullanılmıştır. Yapılan analizler sonucunda yabancı yatırımcıların daha düşük AR-GE harcamalarına sahip olduğu bulunmuştur. Bu durum; yabancı yatırımcılar kendi ana ülkelerindeki ve/veya diğer gelişmiş ekonomilerdeki teknolojik avantajları kullanmaları ile açıklanabilmektedir.

Keywords

AR-GE, İnovasyon, Sahiplik Yapısı

References

• Abrahams, T., & Sidhu, B. K. (1998). The role of R&D capitalisations in firm valuation and performance measurement. Australian Journal of Management, 23(2), 169-183.
• Ahmed, K., & Jinan, M. (2011). The association between research and development expenditure and firm performance: Testing a life cycle hypothesis. International Journal of Accounting, Auditing and Performance Evaluation, 7(4), 267-286.
• Aghion, P., Van Reenen, J., & Zingales, L. (2013). Innovation and institutional ownership. The American Economic Review, 103(1), 277-304.
• Al-Horani, A., Pope, P. F., & Stark, A. W. (2003). Research and development activity and expected returns in the United Kingdom. European Finance Review, 7(1), 27-46.
• Andersson, J., Nordwall, J., & Salomonsson, D. (2005). The link between ownership structure and firm performance: Evidence from Sweden’s listed companies. https://gupea.ub.gu. se/bitstream/2077/2266/1/gbs_thesis_37.pdf, 02.02.2017.
• Barnhart, S. W., & Rosenstein, S. (1998). Board composition, managerial ownership, and firm performance: An empirical analysis. Financial Review, 33(4), 1-16.
• Baysinger, B. D., Kosnik, R. D., & Turk, T. A. (1991). Effects of board and ownership structure on corporate R&D strategy. Academy of Management Journal, 34(1), 205-214.
• Bhagat, S., & Black, B. (2001). The non-correlation between board independence and long- term firm performance. Journal of Corporation Law, 27, 231-274.
• Beiner, S., Drobetz, W., Schmid, M. M., & Zimmermann, H. (2006). An integrated framework of corporate governance and firm valuation. European Financial Management, 12(2), 249-283.
• Brickley, J. A., Lease, R. C., & Smith, C. W. (1988). Ownership structure and voting on antitakeover amendments. Journal of Financial Economics, 20, 267-291.
• Brossard, O., Lavigne, S., & Sakinc, M. E. (2013). Ownership structures and R&D in Europe: The good institutional investors, the bad and ugly impatient shareholders. Industrial and Corporate Change, 22(4), 1031-1068.
• Buckley, P. J., Wang, C., & Clegg, J. (2007). The impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China. International Business Review, 16(2), 142-158.
• Bushee, B. J. (1998). The influence of institutional investors on myopic R&D investment behavior. Accounting Review, 305-333.
• Chambers, D., Jennings, R., & Thompson, R. B. (2002). Excess returns to R&D-intensive firms. Review of Accounting Studies, 7(2-3), 133-158.
• Chan, L. K., Lakonishok, J., & Sougiannis, T. (2001). The stock market valuation of research and development expenditures. The Journal of Finance, 56(6), 2431-2456.
• Chauvin, K. W., & Hirschey, M. (1993). Advertising, R&D expenditures and the market value of the firm. Financial management, 22(4), 128-140.
• Cheng, J. L., & Bolon, D. S. (1993). The management of multinational R&D: A neglected topic in international business research. Journal of International Business Studies, 24(1), 1-18.
• Cheung, K. Y., & Ping, L. (2004). Spillover effects of FDI on innovation in China: Evidence from the provincial data. China Economic Review, 15(1), 25-44.
• Cho, D. S., & Kim, J. (2007). Outside directors, ownership structure and firm profitability in Korea. Corporate Governance: An International Review, 15(2), 239-250.
• Choi, S. B., Lee, S. H., & Williams, C. (2011). Ownership and firm innovation in a transition economy: Evidence from China. Research Policy, 40(3), 441-452.
• De Mello Jr, L. R. (1997). Foreign direct investment in developing countries and growth: A selective survey. The Journal of Development Studies, 34(1), 1-34.
• Eberhart, A. C., Maxwell, W. F., & Siddique, A. R. (2004). An examination of long-term abnormal stock returns and operating performance following R&D increases. The Journal of Finance, 59(2), 623-650.
• Elsayed, K. (2011). Board size and corporate performance: The missing role of board leadership structure. Journal of Management & Governance, 15(3), 415-446.
• Eng, L. L., & Shackell, M. (2001). The implications of long-term performance plans and institutional ownership for firms’ research and development (R&D) investments. Journal of Accounting, Auditing & Finance, 16(2), 117-139.
• Fauzi, F., & Locke, S. (2012). Board structure, ownership structure and firm performance: A study of New Zealand listed-firms.
• Gassmann, O., & Zedtwitz, M. (2003). Trends and determinants of managing virtual R&D teams. R&D Management, 33(3), 243-262.
• Ghaffar, A., & Khan, W. A. (2014). Impact of research and Development on Firm Performance. International Journal of Accounting and Financial Reporting, 4(1), 357.
• Graves, S. B. (1988). Institutional ownership and corporate R&D in the computer industry. Academy of Management Journal, 31(2), 417-428.
• Graves, S. B., & Waddock, S. A. (1990). Institutional ownership and control: Implications for long-term corporate strategy. The Executive, 4(1), 75-83.
• Hill, C. W., & Snell, S. A. (1988). External control, corporate strategy, and firm performance in research intensive industries. Strategic Management Journal, 9(6), 577-590.
• Holderness Clifford, G., Kroszner Randall, S., & Sheehan Dennis, P. (1999). Were the good old days that good? Evolution of managerial stock ownership and corporate governance since the great depression. Journal of Finance, 54, 353-384.
• Krasnikov, A., & Jayachandran, S. (2008). The relative impact of marketing, research-and- development, and operations capabilities on firm performance. Journal of Marketing, 72(4), 1-11.
• Kochhar, R., & David, P. (1996). Institutional investors and firm innovation: A test of competing hypotheses. Strategic Management Journal, 73-84.
• Kouznetsov, P., & Muravyev, A. (2001). Ownership structure and firm performance in Russia: The case of blue chips of the stock market (No. 01-10e). EERC Research Network, Russia and CIS.
• Lev, B., Sarath, B., & Sougiannis, T. (2005). R&D reporting biases and their consequences. Contemporary Accounting Research, 22(4), 977-1026.
• Mak, Y. T., & Kusnadi, Y. (2005). Size really matters: Further evidence on the negative relationship between board size and firm value. Pacific-Basin Finance Journal, 13(3), 301-318.
• Minetti, R., Murro, P., & Paiella, M. (2012). Ownership structure, governance, and innovation: Evidence from Italy.https://editorialexpress.com/cgi-bin/conference/download.cgi?db_ name=ICEEE5&paper_id=160, 01.02.2017.
• Molas-Gallart, J., & Tang, P. (2006). Ownership matters: Intellectual property, privatization and innovation. Research Policy, 35(2), 200-212.
• O’Sullivan, M. (2000). The innovative enterprise and corporate governance. Cambridge Journal of Economics, 24(4), 393-416.
• Oxelheim, L., & Randİy, T. (2003). The impact of foreign board membership on firm value. Journal of Banking & Finance, 27(12), 2369-2392.
• Pearce, R. (1994). The internationalisation of research and development by multinational enterprises and the transfer sciences. Empirica, 21(3), 297-311.
• Porta, R., Lopez de Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. The Journal of Finance, 54(2), 471-517.
• Porter, M. E. (1991). Capital disadvantage: America’s failing capital investment system. Harvard Business Review, 70(5), 65-82.
• Rossi, F., & Cebula, R. J. (2015). Ownership structure and R&D: An empirical analysis of Italian listed companies. PSL Quarterly Review, 68(275), 297-325.
• Sharma, C. (2012). R&D and firm performance: Evidence from the Indian pharmaceutical industry. Journal of the Asia Pacific Economy, 17(2), 332-342.
• Sougiannis, T. (1994). The accounting based valuation of corporate. R&D. Accounting review, 69(1), 44-68.
• Sueyoshi, T., Goto, M., & Omi, Y. (2010). Corporate governance and firm performance: Evidence from Japanese manufacturing industries after the lost decade. European Journal of Operational Research, 203(3), 724-736.
• Teng, D., & Jingtao, Y. (2014).Ownership, R&D intensity and performance: Evidence from transitional China. http://mbsportal.bl.uk/taster/subjareas/strategy/bam2014/strategy/ full/178364contribution200.pdf, 01.02.2017.
• Vo, D., & Phan, T. (2013). Corporate governance and firm performance: Empirical evidence from Vietnam. Journal of Economic Development, 62-78.
• Wang, Y., & Clift, B. (2009). Is there a “business case” for board diversity?. Pacific Accounting Review, 21(2), 88-103.
• Yan Lam, T., & Kam Lee, S. (2008). CEO duality and firm performance: Evidence from Hong Kong. Corporate Governance: The international Journal of Business in Society, 8(3), 299-316.
• Zahra, S. A., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship- performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), 43-58.
• Zhang, Y., Li, H., Hitt, M. A., & Cui, G. (2007). R&D intensity and international joint venture performance in an emerging market: Moderating effects of market focus and ownership structure. Journal of International Business Studies, 38(6), 944-960.
• Zeng, T., & Lin, H. C. (2011). Ownership structure and R&D spending: Evidence from China’s listed firms. Chinese Management Studies, 5(1), 82-93.