The interactions between R&D investment decisions and compensation policy

被引：121
|
作者：
Ryan, HE [1 ]
Wiggins, RA
机构：
[1] Louisiana State Univ, Baton Rouge, LA 70803 USA
[2] Bentley Coll, Waltham, MA 02154 USA
来源：
FINANCIAL MANAGEMENT | 2002年 / 31卷 / 01期
关键词：
D O I：
10.2307/3666319
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We use a system of equations to investigate the endogenous relation between R&D investment and CEO compensation. Growth opportunity is positively related to the use of stock options. Stock options positively affect R&D while restricted stock has a negative influence. These results suggest that CEO compensation should balance incentive alignment and efficient risk sharing with risk-averse managers. Stock options are also found to be negatively related to leverage, but positively related to convertible debt. Additionally, this analysis suggests that institutional ownership directly influences R&D investment by providing managerial oversight and indirectly by influencing the compensation policy.
引用
收藏
页码：5 / 29
页数：25
相关论文
共 50 条
  • [21] The Research of the Factors that Influence the Debt Financing Constraints on R&D Investment Decisions
    Wen Zhijia
    Proceedings of the Second International Symposium - Management, Innovation and Development, 2015, : 717 - 723
  • [22] INFLATION AND R&D INVESTMENT
    Costamagna, Rodrigo
    JOURNAL OF INNOVATION ECONOMICS & MANAGEMENT, 2015, (17): : 143 - 163
  • [23] R&D investment decisions in business groups: Evidence from a natural experiment
    Choi, Daewoung
    Choi, Seungho
    Gam, Yong Kyu
    Shin, Hojong
    CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2022, 30 (01) : 55 - 79
  • [24] Financing constraints, fixed capital and R&D investment decisions of Belgian firms
    Cincera, M
    FIRMS' INVESTMENT AND FINANCE DECISIONS: THEORY AND EMPIRICAL METHODOLOGY, 2003, : 129 - 152
  • [25] Capital structure decisions and R&D investment: The contingency role of firm size
    Ali, Sarmad
    Rangone, Adalberto
    Muhammad, Hussain
    JOURNAL OF GENERAL MANAGEMENT, 2024,
  • [26] Using Monte Carlo Simulation to Improve Ceramic R&D Investment Decisions
    He Bao-cheng
    Jiang Hong-tao
    Yao Shu-zhi
    He Bao-yuan
    CHINESE CERAMICS COMMUNICATIONS, 2010, 105-106 : 798 - +
  • [27] Correlation between R&D Investment and Sales Growth of a Company with 90 Years in R&D Operation
    Tomita, H.
    Ikeda, Y.
    Takeda, H.
    2008 IEEE INTERNATIONAL CONFERENCE ON MANAGEMENT OF INNOVATION AND TECHNOLOGY, VOLS 1-3, 2008, : 1021 - +
  • [28] Investment in fisheries R&D
    不详
    FOOD AUSTRALIA, 2006, 58 (06): : 242 - 242
  • [29] The Role of Excess Rate of Return for R&D Investment Decisions inFinancial Context
    Jing, Li
    Sang-Kyu, Park
    Li, BingJin
    2012 2ND INTERNATIONAL CONFERENCE ON APPLIED SOCIAL SCIENCE (ICASS 2012), VOL 1, 2012, : 494 - +
  • [30] A Study on the Relationship between Different Technological Absorptive Capacities and R&D Investment in Joint R&D
    Wang Lei
    Shu Hai-bo
    Zhu Guo-ping
    2013 INTERNATIONAL CONFERENCE ON MANAGEMENT SCIENCE AND ENGINEERING (ICMSE), 2013, : 1975 - 1980
12345