Research Article
The Relationship Between Ownership Structure and R&D Intensity: A Research on Chemicals Petroleum Rubber and Plastic Products Sector
Abstract
In this study, the effect of ownership structure on Research and Development intensity was investigated. In this context, the institutional investor rate, foreign investor rate and ownership concentration were used as ownership structure indicators. The data set of the research includes the annual data of 22 companies included in the BIST Chemicals, Petroleum Rubber and Plastic Products for the years 2012-2020. Dynamic panel data analysis method (GMM) was used to analyse the data. As a result of the study, negative relationship between institutional investor rate and Research and Development intensity; a positive relationship was found between foreign investors and ownership concentration.
References
- Agrawel, A. & Knoeber, C. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377-397.
- Agrawel, A. & Mandelker, G. (1990). Large shareholders and the monitoring of managers: The case of antitakeover charter amendments, Journal of Financial and Quantitative Analysis, 25(2), 143-167.
- Ain, Q. U., Yuan, X. & Javaid, H. M. (2021). The impact of board gender diversity and foreign institutional investors on firm innovation: Evidence from China. European Journal of Innovation Management.
- AlHares, A., Ntim, C.G. & King, D. (2018). Block ownership and companies’ R&D intensity: the moderating effect of culture. Corporate Ownership and Control, 15(2), 19-32.
- Bethel, J.E. & Liebeskind, J. (1993). The effects of ownership structure on corporate restructuring. Strategic Management Journal, 14, 15-32.
- Brossard, O., Lavigne, S. & Sakinç, M. (2013). Ownership structures and R&D in Europe: the good institutional investors, the bad and ugly impatient shareholders. Ind. Corp. Change, 22(4), 1031–1068.
- Chatterjee, M., & Bhattacharjee, T. (2020). Ownership concentration, innovation and firm performance: Empirical study in Indian technology SME context. South Asian Journal of Business Studies, 10(2), 149–177.
- Chen, V. Z., Li, J., Shapiro, D. M., & Zhang, X. (2014). Ownership structure and innovation: An emerging market perspective. Asia Pacific Journal of Management, 31(1), 1–24.
- Cherkasova V. A. & Baron A. A. (2021). The impact of the ownership structure on the innovative activity of Russian companies. St. Petersburg University Journal of Economic Studies, 37(4), 570–600.
- Chi, J., Liao, J. & Yang, J.J. (2019). Institutional stock ownership and firm innovation: evidence from China. Journal of Multinational Financial Management, 50, 44-57.
- David, P., Yoshikawa, T., Chari, M.D.R. & Rasheed, A.A. (2006). Strategic investments in Japanese corporations: do foreign portfolio owners foster underinvestment or appropriate investment? Strateg. Manage. J., 27(6), 591–600.
- Doğan, M. & Tiryakioğlu, M. (2018). Sahiplik yapısı ve ar-ge harcamaları: Borsa İstanbul örneği. Uluslararası Yönetim İktisat ve İşletme Dergisi, 14(1), 67-79.
- García-García, L., Alonso-Buenaposada, M. G., RomeroMerino, M. E., & Santamaria-Mariscal, M. (2020). Ownership structure and R&D investment: The role of identity and contestability in Spanish listed firms. Academia Revista Latinoamericana de Administración, 33(3/4), 405–426.
- Gupta, A. (2019). Capital structure, ownership structure and R&D investments: Evidence from Indian firms. IUP Journal of Applied Finance, 25(1), 36-59.
- Himmelberg, C. & Petersen, B. (1994). R&D and internal finance: A panel study of small firms in high-tech industries. Review of Economics and Statistics, 76(1): 38–51.
- Iturriaga, L., Félix, J. & López-Millán, E. J. (2017). Institutional framework, corporate ownership structure, and R&D investment: An international analysis. R&D Management, 47 (1), 141–157.
- Jones, E. & Danbolt, J. (2003). R&D project announcements and the impact of ownership structure. Applied Economics Letters, 10:14, 933-936.
- Kim, H., & Park, S. Y. (2012). The relation between cash holdings and R&D expenditures according to ownership structure. Eurasian Business Review, 2(2), 25–42.
- Kim, H., Kim, H. & Lee, P.M. (2008). Ownership structure and the relationship between financial slack and R&D investments: evidence from Korean firms. Organization Science, 19, 404–418.
- Kwon, H.U. & Park, J. (2018). R&D, foreign ownership, and corporate groups: evidence from Japanese firms. Res. Policy, 47, 428–439.
- Lee, H. & Park, J. (2008). The influence of top-management team international exposure on international alliance formation. Journal of Management Studies, 45(5): 961–981.
- Luong, H., Moshirian, F., Nguyen, L., Tian, X. & Zhang, B.H. (2017). How do foreign institutional investors enhance firm innovation? Journal of Financial and Quantitative Analysis, 52(4), 1449-1490.
- Mezghanni, B. S. (2008). Ownership structure, board of directors and R&D investments: Evidence from France. Corporate Ownership and Control, 5(3-2), 250-262.
- Nguyen, D., Nguyen, H. & Nguyen, K.S. (2018). Ownership feature and firm performance via corporate innovation performance: Does it really matter for Vietnamese SMEs? J. Asian Bus. Econ. Stud., 25, 239–250.
- Park, J. (2011). Foreign ownership and R&D investment: empirical evidence from Korean firm-level data. Kukje Kyungje Yongu, 17(2), 1–24.
- Rong, Z., Wu, X. & Boeing, P. (2017). The effect of institutional ownership on firm innovation: evidence from Chinese listed firms. Res. Policy, 46 (9), 1533–1551.
- Shleifer, A. & Vishny, R. (1986). Large shareholders and corporate control. Journal of Political Economy, 94, 461-488.
- Singh, D. A., & Gaur, A. S. (2013). Governance structure, innovation and internationalization: Evidence from India. Journal of International Management, 19(3), 300–309.
- Tribo, J.A., Berrone, P. & Surroca, J. (2007). Do the type and number of blockholders influence R&D investments? New evidence from Spain. Corporate Governance, 15 (5), 828–842.
- Usman, M., Xiao, S., Ashraf, R.U. & Lian, F. (2017). Role of ownership structure in firm R&D investment decision: evidence from Chinese high-tech industry. In: International Conference on Industrial Economic System and Industry Security Engineering, pp. 1–5.
- Wan, W., Zhou, F., Liu, L., Fang, L., & Chen, X. (2021). Ownership structure and R&D: The role of regional governance environment. International Review of Economics & Finance, 72, 45–58.
- Wang, W., Li, X., & Liu. W. (2017). Research on the relationship among ownership structure, R&D investment and innovation performance: Based on data analysis of listed auto companies in China. Portland International Conference on Management of Engineering & Technology.
- Yoo, T. & Rhee, M. (2013). Agency theory and the context for R&D investment: evidence from Korea. Asian Bus. Manag., 12, 227–252.
- Zhou, K. Z., Gao, G. Y., & Zhao, H. (2017). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.
Sahiplik Yapısı ve Ar-Ge Yoğunluğu Arasındaki İlişki: Kimya İlaç Petrol Lastik ve Plastik Ürünler Sektörü Üzerine Bir Araştırma
Abstract
Bu çalışmada sahiplik yapısı ile Araştırma ve Geliştirme yatırımları arasındaki ilişki araştırılmıştır. Bu kapsamda sahiplik yapısı göstergesi olarak kurumsal yatırımcı oranı, yabancı yatırımcı oranı ve yoğun sahiplik oranı değişkenleri kullanılmıştır. Araştırmanın veri seti, Borsa İstanbul’da hisse senetleri işlem gören ve Kimya, İlaç, Petrol, Lastik ve Plastik Ürünler Sektöründe faaliyet gösteren 22 şirketin 2012-2020 yılları arasına ait yıllık verilerinden oluşmaktadır. Verilerin analizinde dinamik panel veri analizi kullanılmıştır. Araştırma sonucunda; kurumsal yatırımcı oranı ile araştırma ve geliştirme yatırımları arasında negatif ilişki; yabancı yatırımcı ve yoğun sahiplik oranı arasında pozitif ilişki tespit edilmiştir. Bu bağlamda kurumsal yatırımcı oranında meydana gelen değişim Araştırma ve Geliştirme yatırımlarını azaltırken, yabancı yatırımcı ve yoğun sahiplik oranında meydana gelen değişim Araştırma ve Geliştirme yatırımlarını artırmaktadır.
References
- Agrawel, A. & Knoeber, C. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3), 377-397.
- Agrawel, A. & Mandelker, G. (1990). Large shareholders and the monitoring of managers: The case of antitakeover charter amendments, Journal of Financial and Quantitative Analysis, 25(2), 143-167.
- Ain, Q. U., Yuan, X. & Javaid, H. M. (2021). The impact of board gender diversity and foreign institutional investors on firm innovation: Evidence from China. European Journal of Innovation Management.
- AlHares, A., Ntim, C.G. & King, D. (2018). Block ownership and companies’ R&D intensity: the moderating effect of culture. Corporate Ownership and Control, 15(2), 19-32.
- Bethel, J.E. & Liebeskind, J. (1993). The effects of ownership structure on corporate restructuring. Strategic Management Journal, 14, 15-32.
- Brossard, O., Lavigne, S. & Sakinç, M. (2013). Ownership structures and R&D in Europe: the good institutional investors, the bad and ugly impatient shareholders. Ind. Corp. Change, 22(4), 1031–1068.
- Chatterjee, M., & Bhattacharjee, T. (2020). Ownership concentration, innovation and firm performance: Empirical study in Indian technology SME context. South Asian Journal of Business Studies, 10(2), 149–177.
- Chen, V. Z., Li, J., Shapiro, D. M., & Zhang, X. (2014). Ownership structure and innovation: An emerging market perspective. Asia Pacific Journal of Management, 31(1), 1–24.
- Cherkasova V. A. & Baron A. A. (2021). The impact of the ownership structure on the innovative activity of Russian companies. St. Petersburg University Journal of Economic Studies, 37(4), 570–600.
- Chi, J., Liao, J. & Yang, J.J. (2019). Institutional stock ownership and firm innovation: evidence from China. Journal of Multinational Financial Management, 50, 44-57.
- David, P., Yoshikawa, T., Chari, M.D.R. & Rasheed, A.A. (2006). Strategic investments in Japanese corporations: do foreign portfolio owners foster underinvestment or appropriate investment? Strateg. Manage. J., 27(6), 591–600.
- Doğan, M. & Tiryakioğlu, M. (2018). Sahiplik yapısı ve ar-ge harcamaları: Borsa İstanbul örneği. Uluslararası Yönetim İktisat ve İşletme Dergisi, 14(1), 67-79.
- García-García, L., Alonso-Buenaposada, M. G., RomeroMerino, M. E., & Santamaria-Mariscal, M. (2020). Ownership structure and R&D investment: The role of identity and contestability in Spanish listed firms. Academia Revista Latinoamericana de Administración, 33(3/4), 405–426.
- Gupta, A. (2019). Capital structure, ownership structure and R&D investments: Evidence from Indian firms. IUP Journal of Applied Finance, 25(1), 36-59.
- Himmelberg, C. & Petersen, B. (1994). R&D and internal finance: A panel study of small firms in high-tech industries. Review of Economics and Statistics, 76(1): 38–51.
- Iturriaga, L., Félix, J. & López-Millán, E. J. (2017). Institutional framework, corporate ownership structure, and R&D investment: An international analysis. R&D Management, 47 (1), 141–157.
- Jones, E. & Danbolt, J. (2003). R&D project announcements and the impact of ownership structure. Applied Economics Letters, 10:14, 933-936.
- Kim, H., & Park, S. Y. (2012). The relation between cash holdings and R&D expenditures according to ownership structure. Eurasian Business Review, 2(2), 25–42.
- Kim, H., Kim, H. & Lee, P.M. (2008). Ownership structure and the relationship between financial slack and R&D investments: evidence from Korean firms. Organization Science, 19, 404–418.
- Kwon, H.U. & Park, J. (2018). R&D, foreign ownership, and corporate groups: evidence from Japanese firms. Res. Policy, 47, 428–439.
- Lee, H. & Park, J. (2008). The influence of top-management team international exposure on international alliance formation. Journal of Management Studies, 45(5): 961–981.
- Luong, H., Moshirian, F., Nguyen, L., Tian, X. & Zhang, B.H. (2017). How do foreign institutional investors enhance firm innovation? Journal of Financial and Quantitative Analysis, 52(4), 1449-1490.
- Mezghanni, B. S. (2008). Ownership structure, board of directors and R&D investments: Evidence from France. Corporate Ownership and Control, 5(3-2), 250-262.
- Nguyen, D., Nguyen, H. & Nguyen, K.S. (2018). Ownership feature and firm performance via corporate innovation performance: Does it really matter for Vietnamese SMEs? J. Asian Bus. Econ. Stud., 25, 239–250.
- Park, J. (2011). Foreign ownership and R&D investment: empirical evidence from Korean firm-level data. Kukje Kyungje Yongu, 17(2), 1–24.
- Rong, Z., Wu, X. & Boeing, P. (2017). The effect of institutional ownership on firm innovation: evidence from Chinese listed firms. Res. Policy, 46 (9), 1533–1551.
- Shleifer, A. & Vishny, R. (1986). Large shareholders and corporate control. Journal of Political Economy, 94, 461-488.
- Singh, D. A., & Gaur, A. S. (2013). Governance structure, innovation and internationalization: Evidence from India. Journal of International Management, 19(3), 300–309.
- Tribo, J.A., Berrone, P. & Surroca, J. (2007). Do the type and number of blockholders influence R&D investments? New evidence from Spain. Corporate Governance, 15 (5), 828–842.
- Usman, M., Xiao, S., Ashraf, R.U. & Lian, F. (2017). Role of ownership structure in firm R&D investment decision: evidence from Chinese high-tech industry. In: International Conference on Industrial Economic System and Industry Security Engineering, pp. 1–5.
- Wan, W., Zhou, F., Liu, L., Fang, L., & Chen, X. (2021). Ownership structure and R&D: The role of regional governance environment. International Review of Economics & Finance, 72, 45–58.
- Wang, W., Li, X., & Liu. W. (2017). Research on the relationship among ownership structure, R&D investment and innovation performance: Based on data analysis of listed auto companies in China. Portland International Conference on Management of Engineering & Technology.
- Yoo, T. & Rhee, M. (2013). Agency theory and the context for R&D investment: evidence from Korea. Asian Bus. Manag., 12, 227–252.
- Zhou, K. Z., Gao, G. Y., & Zhao, H. (2017). State ownership and firm innovation in China: An integrated view of institutional and efficiency logics. Administrative Science Quarterly, 62(2), 375–404.
There are 34 citations in total.
Details
| Primary Language | Turkish |
|---|---|
| Subjects | Finance |
| Journal Section | Research Article |
| Authors | |
| Publication Date | December 30, 2022 |
| Published in Issue | Year 2022 Volume: 7 Issue: 2 |
JOEEP is published as two issues per year June and December and all publication policies and processes are conducted according to the international standards. JOEEP accepts and publishes the research articles in the fields of economics, political economy, fiscal economics, applied economics, business economics, labour economics and econometrics. JOEEP, without depending on any institution or organization, is a non-profit journal that has an International Editorial Board specialist on their fields. All “Publication Process” and “Writing Guidelines” are explained in the related title and it is expected from authors to Show a complete match to the rules. JOEEP is an open Access journal.