Corporate R&amp;D intensity and high cash holdings: post-crisis analysis

Magerakis, Efstathios; Γκίλλας, Κωνσταντίνος; Floros, Christos; Peppas, George

doi:10.1007/s12351-021-00660-3

Cited by 5 publications

(1 citation statement)

References 84 publications

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“…When cash flow is volatile, the investment decision on R&D will become cautious [18]. Conversely, the R&D investment of an enterprise will also affect its own cash holding [19]. Continued R&D investment can also help enterprises boost their profitability under economic crisis [20].…”

Section: Hypothesis 3 (H3)mentioning

confidence: 99%

Influencing Factors of Enterprise R&D Investment: Post-Subsidy, Sustainability, and Heterogeneity

2022

Sustainability

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Sustainable innovation is an important factor for enterprises to obtain core competitiveness in modern society, and only continuous R&D investment can ensure the smooth progress of enterprise innovation. Therefore, this study uses the post-subsidy data of enterprise R&D investment released by Hangzhou Science and Technology Bureau to explore the influencing factors of R&D investment and its sustainability by Chinese high-tech enterprises. In contrast to previous research which mainly focused on the pre-subsidy, this study focuses on the post-subsidy policy of R&D investment sustainability. Empirical analysis methods, such as cross-sectional linear regression and the propensity-score-matching method, were used to draw the following conclusions: (1) The quantity and sustainability of R&D investment of enterprises are obviously unbalanced among regions. Regions where high-tech enterprises are concentrated have higher levels of R&D investment and sustainability than other regions. (2) Under different scales, there are significant differences in the amount and sustainability of R&D investment. Large enterprises have stronger R&D investment strength, while small enterprises have stronger R&D investment willingness. However, the effect of scale on R&D investment will be reduced by regional factors. (3) The evaluation of high-tech enterprises and the enterprises’ R&D investments affect each other. (4) The sustainability of enterprise R&D investment will be affected by enterprise heterogeneity factors, and in turn, the sustainability of enterprise R&D investment will also affect the amount of enterprise R&D investment. Based on the results, the study provides suggestions for the government to make more targeted policies.

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Section: Hypothesis 3 (H3)mentioning

confidence: 99%