The Effect of Market Pressure on Myopic R&D

• Main Authors: Lee,Ying-Ying, 李穎盈
• Other Authors: Chan, Chia-Chung
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/35146783463884857251

碩士 === 東海大學 === 財務金融學系 === 102 === Due to most part of the prior researches examines only the relationship between myopic investment and corporate governance or financial constrains but not yet concerns about whether market pressure will affect myopic investment or not. This study examines the relationship between market pressure and myopic investment to find whether corporate under great market pressure will reduce their R&D expenditure? This study takes the companies that stocks are openly traded on the Taiwan Stock Market between 2006 and 2012. The empirical result shows that there is a significant relationship between market pressures and myopic behavior: the greater the pressure managers faced from capital market, the easier they give up long-term investment in research and development expenditure. In addition, the corporate governance and financial constrains also have the effects of the research and development expenditure, but does not affect the results of this study.