Internal Funding Determinants of R&D Expenditures for U.S. Mature Firms

• Autorzy: Manuela Tvaronaviciene , Arunas Burinskas
• Języki publikacji: EN

Abstrakty

EN

Since research and development (R&D) investment identified as the main factor for economic development in contemporary endogenous models, many studies investigated the determinants of such investment. Though there is no disagreement that internal financing sources are vital for R&D expenditures (at least for matured firms), there are still ongoing discussions as to which of them takes priority: revenue or cash flows. This paper analyses the impact of firms' revenue and cash flow on R&D expenditures by employing a dynamic linear model. Also, we use the Vector Error Correction Model to test the variance composition. Our research confirms that, in the beginning, positive revenue dynamics serve as the most critical signal for business to invest in R&D activity. However, later profit that firms earn comes to the first place in the ladder of their motivation. (original abstract)

Słowa kluczowe

PL

Polityka badawczo-rozwojowa; Wydatki inwestycyjne; Wynik finansowy; Placówki badawczo-rozwojowe

EN

R&D policy; Investment expenditures; Financial performance; R&D facility research

• Czasopismo: Journal of International Studies
• Rocznik: 2021
• Tom: 14
• Numer: nr 1
• Strony: 276-284

Twórcy

autor

Manuela Tvaronaviciene

• Vilnius Gediminas Technical University (Vilnius Tech), Vilnius; General Jonas Zemaitis Military Academy of Lithuania, Lithuania

autor

Arunas Burinskas

• Vilnius University, Lithuania

Bibliografia

• Alam, A., Uddin, M., & Yazdifar, H. (2019). Financing behaviour of R&D investment in the emerging markets: The role of alliance and financial system. R&D Management, 49(1), 21-32.
• Becker, B. (2013). The determinants of R&D investment: a survey of empirical research. Loughborough University Discussion Papers.
• Becker, B., & Hall, S.G. (2013). Do R&D strategies in high-tech sectors differ from those in low-tech sectors? - An alternative approach to testing the pooling assumption. Economic Change and Restructuring, 46, 138-202.
• Bilan, Y., Rubanov, P., Vasylieva, T., & Lyeonov, S. (2019). The influence of industry 4.0 on financial services: Determinants of alternative finance development. Polish Journal of Management Studies, 19(1), 70-93.
• Brown, J.R., & Floros, I.V. (2012) Access to private equity and real firm activity: Evidence from PIPEs. Journal of Corporate Finance, 18, 151-165.
• Brown, J.R., & Petersen, B.C. (2011) Cash holdings and R&D smoothing. Journal of Corporate Finance, 17, 694-709.
• Bond, S., Harhoff, D., & Van Reenen, J. (2005) Investment, R&D and financial constraints in Britain and Germany. Annales d'Économie et de Statistique, 79/80, 435-463.
• Borisova, G., & Brown, J.R. (2013) R&D sensitivity to asset sale proceeds: New evidence on financing constraints and intangible investment. Journal of Banking and Finance, 37, 159-173.
• Canarella, G., & Miller, S.M. (2018). The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis. Economic Modelling, 70, 259-271.
• Chuang, H. (2017). R&D investment, cash holdings and the financial crisis: Evidence from Korean corporate data. Applied Economics, 49, 5638-5650.
• Doloreux, D., Shearmur, R., & Rodriguez, M. (2016). Determinants of R&D in knowledge-intensive business services firms. Economics of Innovation and New Technology, 25(4), 391-405.
• García-Quevedo, J., Pellegrino, G., & Vivarelli, M. (2014). R&D drivers and age: Are young firms different? Resource Policy, 43, 1544-1556.
• Hillier, D., Pindado, J., De Queiroz, V., & De La Torre, C. (2011) The impact of country level corporate governance on research and development. Journal of International Business Studies, 42, 76-98.
• Khalatur, S., Khaminich, S., Budko, O., Dubovych, O., & Karamushka, O. (2020). Multiple system of innovation********investment decisions adoption with synergetic approach usage. Entrepreneurship and Sustainability Issues, 7(4), 2745-2763. http://doi.org/10.9770/jesi.2020.7.4(12)
• Kliestik, T., Valaskova, K., Lazaroiu, G., Kovacova, M., & Vrbka, J. (2020). Remaining Financially Healthy and Competitive: The Role of Financial Predictors. Journal of Competitiveness, 12(1), 74-92.
• Korshenkov, E., & Ignatyev, S. (2020). Empirical interpretation and measurement of the productivity and efficiency of regions: The case of Latvia. Insights into Regional Development, 2(2), 549-561. https://doi.org/10.9770/IRD.2020.2.2(4)
• Limanlı, Ö. (2015). Determinants of R&D investment decision in Turkey. Procedia-Social and Behavioral Sciences, 195, 759-767.
• Manez, J.A., Rochina-Barrachina, M.E., Sanchis-Llopis, A., & Sanchis-Llopis, J.A. (2015). The determinants of R&D persistence in SMEs. Small Business Economics, 44(3), 505-528.
• Mishchuk, H., Bilan, Y., & Pavlushenko, L. (2016). Knowledge management systems: Issues in enterprise human capital management implementation in transition economy. Polish Journal of Management Studies, 14(1), 163-173.
• Moncada-Paterno-Castello, P., & Grassano, N. (2020). The E.U. vs U.S. corporate R&D intensity gap: Investigating key sectors and firms. Joint Research Centre.
• Nurpeisova, A., Mauina, G., Niyazbekova, Sh., Jumagaliyeva, A., Zholmukhanova, A., Tyurina, Yu., Murtuzalieva, S., & Maisigova L. (2020). Impact of R&D expenditures on the country's innovative potential: a case study. Entrepreneurship and Sustainability Issues, 8(2), 682-697. http://doi.org/10.9770/jesi.2020.8.2(41)
• Petrin, T. (2018). A literature review on the impact and effectiveness of government support for R&D and innovation. University of Chicago, US.
• Saidi, K., & Mongi, C. (2018). The effect of education, R&D and ICT on economic growth in high income countries. Economics Bulletin, 38(2), 810-825.
• Sameti, M., Ranjbar, H., & Anousheh, S. (2010). Determinants of R&D Investment: a Study of OECD Countries. Bilgi Ekonomisi ve Yönetimi Dergisi, 5(2), 35-42.
• Sasidharan, S., Lukose, P. J., & Komera, S. (2015). Financing constraints and investments in R&D: Evidence from Indian manufacturing firms. The Quarterly Review of Economics and Finance, 55, 28-39.
• Xu, J., & Sim, J.W. (2018). Characteristics of corporate R&D investment in emerging markets: Evidence from manufacturing industry in China and South Korea. Sustainability, 10(9), 300-312.

Identyfikatory

DOI

10.14254/2071-8330.2021/14-1/19