Democracy and corporate R&D investment
Quoc Trung Tran
Borsa Istanbul Review · 2022
doi:10.1016/j.bir.2021.06.013 (opens in a new tab)
We email you when a new notice or a question about this paper appears.
Abstract
This paper investigates how a democratic environment affects corporate R&D investment around the world. Using a sample of 114,318 observations from 34 countries over the period 2002–2016, we find that democracy is negatively related to R&D expenditure and positively associated with R&D investment efficiency. These findings imply that a democratic environment helps firms improve their corporate governance and thus reduces their overinvestment in R&D projects. In addition, the effects of democracy on both corporate investment in R&D and investment efficiency are stronger when shareholders have strong legal protections. These effects are also stronger at large and highly leveraged firms.
Abstract licence: CC BY-NC-ND
Reads
Read by people on this page
None yet.
Checked or read by AI through naulon
None yet.
A person counts once a day per paper. We keep no cookie and no address: a reader is a hash that changes every day. Any month under five reads shows no number.
Are you an author?
Is this your paper?
Claim it to add your note and be paid when agents cite it. Free.