| Summary: | 碩士 === 長榮大學 === 企業管理學系碩士班 === 93 === The major purpose of this study is to investigate the relationship among corporate performance，R&D investment and ownership structure. The economic value added (EVA) is utilized as a measure of corporate performance. By following Rogerson’s (1997) function of R&D investment and accounting income and through Moyer, McGuign and Kretlow (2003) cash flow generation process, this study establishes the theoretical functional relationship of EVA and R&D investment expenditure. Therefore, it allows us to make empirical study by establishing simultaneous equations of the three concerned variables. In addition, the three-stage least squares method is used to estimate parameters.
There are several empirical findings worth discussing. First of all, it is found that there are two-way positive correlations for R&D investment and EVA pair, in additional to EVA and ownership structure pair. In reverse, ownership structure and R&D investment pair has a two-way negative correlation. It means that R&D investment will improve corporate performance, which encourages inside holders to hold more shares. Whereas, the more they hold shares, the less they are willing to increase the expenditure on the risky R&D activity. Without saying, this study supports that ownership structure should be treated as an endogenous variable in the study of corporate performance and R&D investment.
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