The impact of R&D expense and CEO power on Corporate performance

• Main Authors: Cheng-Lun Chen, 陳正倫
• Other Authors: Jian-Hsin Chou
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/90356756039287225338

碩士 === 國立高雄第一科技大學 === 財務管理研究所 === 103 === As technology improves every day, the impact of research and development on corporate operation is always a major issue intensively investigated by all sorts of persons. In addition, it has influenced company’s existence and future development and thus its importance has increased with each passing day. In this study, we want to investigate the relationship among research and development (R&D) expense, CEO power and corporate performance. Previous researchers have indicated that the amount of R&D expense and corporate performance was positively correlated; however, the decisive factor of this result is closely relevant to CEO power. For the company, CEOs have the authority of resource allocation, which will influence the ratio of the R&D expense to business budget and indirectly affect the corporate performance. Tobin’s Q is used as a measure for corporate performance to examine the impact of R&D investment and CEO power on corporate performance. The empirical results show that it will help to increase the corporate performance if high R&D expense is thrown into. Also, we conclude that the majority of CEO power indexes will have a significant impact on corporate performance.