The Role of Directors in the Relationship between Family Firm and R&D Investment

• Main Authors: LU, TZU-HSIEN, 呂姿嫺
• Other Authors: CHUANG, CHIEN-HUI
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/2ug556

碩士 === 東海大學 === 會計學系 === 107 === In Taiwan, most of the companies are family firms. The strategic decision considerations of family firms are different from other firms. R&D investment is one of the key ways in building firms’ competitive advantage, especially for electronic firms in Taiwan. Therefore, this paper examines the preference of family firms in R&D investment and the role of directors in family firms’ R&D decision making. In family firms’ decision making, the directors play the role of monitor or resource providing to help the strategy implementation successfully. This study also examines how the related experience moderates the relationship between family firms and R&D investment. The empirical results show that family firms have lower R&D investment than non-family firms. In the examination of the role of the board of directors, the outside directors provide monitor role in the R&D investment decision making of family firms which decrease the R&D investment to avoid unnecessary waste of resource. Moreover, the related experience of outside directors aims the strength of monitoring. On the other hand, inside directors play the role of resource providing in the R&D investment decision of family firms which increase the R&D investment. However, the related experience of inside directors decreases the R&D investment, which shows that the experience of inside directors can provide helpful suggestion to help the company to use resource efficiently, not over-investment resource and maximize the benefit from R&D investment.