کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5089254 1375588 2013 10 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Equity compensation and the sensitivity of research and development to financial market frictions
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Equity compensation and the sensitivity of research and development to financial market frictions
چکیده انگلیسی

When financial market frictions exist, executives may have to decide which investment activities to reduce when internal funds decrease. Expenditures on research and development (R&D) may be particularly vulnerable because of the long-term nature of innovative activity. We find that equity compensation is associated with lower levels of firm R&D expenditures. Rewarding executives to incur more risk has little effect on R&D expenditures, but rewarding executives for higher returns reduces R&D expenditures and makes R&D expenditures more sensitive to financial market frictions. In contrast, cash compensation reduces the sensitivity of R&D expenditures to financial market frictions.

► Controls for endogeneity bias caused by serial correlation when explanatory variables are predetermined. ► Increasing delta reduces R&D spending and makes R&D more sensitive to financial market frictions. ► There is no relationship between vega and R&D. ► Cash compensation makes R&D less sensitive to financial market frictions.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Banking & Finance - Volume 37, Issue 7, July 2013, Pages 2510-2519
نویسندگان
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