Budget Cycles, R&D Investment and Crowding Out: Government Dependent Firms and Their Peers

2015 ◽  
Author(s):  
Phong T. H. Ngo ◽  
Jared R. Stanfield
Keyword(s):  
Crowding Out ◽  
D Investment ◽  
Budget Cycles

scholarly journals Crowding in or crowding out? How local government debt influences corporate innovation for China

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259452
Author(s):  
Junbing Xu ◽  
Yuanyuan Li ◽  
Dawei Feng ◽  
Zhouyi Wu ◽  
Yang He
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Market Competition ◽  
Government Debt ◽  
Crowding Out ◽  
Fiscal Policies ◽  
Corporate Innovation ◽  
Government Financing ◽  
Investment In China ◽  
D Investment

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm’s size is small, the firm’s age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt.

Crowding‐in and crowding‐out effects of corporate philanthropy on R&D investment

2021 ◽  
Author(s):  
Shuxia Zhang ◽  
Liping Xu ◽  
Ning Liu
Keyword(s):  
Corporate Philanthropy ◽  
Crowding Out ◽  
D Investment

scholarly journals Competitive Advantages of Cross-Border M&As to Non-Location-Bound Chinese ICT Firms

2020 ◽  
Author(s):  
Yan Chen ◽  
Fei Li ◽  
Jaime Ortiz ◽  
Wenbo Guo
Keyword(s):  
Competitive Advantage ◽  
Home Country ◽  
Emerging Market ◽  
Information And Communications Technology ◽  
Crowding Out ◽  
Communications Technology ◽  
Competitive Advantages ◽  
Technology Firms ◽  
Cross Border ◽  
D Investment

Cross-border mergers and acquisitions (M&As) undertaken by emerging market firms have been associated with competitive advantage. However, little research has focused on the transferability of this enhanced competitive advantage. Even less is known about the role played by state-owned enterprises. This paper investigates whether Chinese information and communications technology firms that undertake cross-border M&As can improve their non-location bound competitive advantage. We used cross-border data between 2010 and 2017 and propensity-score matching and differences-in-differences approaches. We found that cross-border M&As significantly improve the home-country-bound competitive advantage. However, the effect on non-location bound competitive advantage is not significant. From the perspective of impact mechanism, this is due to a crowding-out effect of cross-border M&As on research and development (R&D) investment which inhibits non-location bound advantages. It also results from state-owned enterprises which are generally considered to have institutional advantages, not effectively using cross-border M&As to enhance their competitive advantages. This research distinguishes and quantifies home-country-bound competitive advantage and non-location bound competitive advantage and establishes a framework for how cross-border M&As enhance enterprise competitive advantage. It provides an explanation for the extant research on whether state-owned enterprises can enhance their competitive advantage through cross-border M&As, and what kind of advantage they attain.

The relation between R&D accounting treatment and the risk of the firm: Evidence from the Italian market

2014 ◽  
pp. 33-54 ◽  
Author(s):  
Riccardo Cimini ◽  
Alessandro Gaetano ◽  
Alessandra Pagani
Keyword(s):  
Earnings Management ◽  
Fiscal Year ◽  
Investment Strategies ◽  
Capital Assets ◽  
Italian Market ◽  
D Investment ◽  
Firm Evidence

In this paper, we investigate the relation between the different accounting treatments of R&D expenditures and the risk of the entity in order to identify under which treatment insiders are more likely to carry out earnings management. By analysing the R&D investment strategies of a sample of 137 listed Italian entities that complied with the requirements of IAS 38 during fiscal year 2009, following Lantz and Sahut (2005), we calculate several indexes that show the preferences of insiders to account R&D expenditures as costs or capital assets, and we study the relation of such preferences with the risk of the entity, which we measure with the unlevered beta. We hypothesize that the entities, which considered the R&D investments as costs, are the riskiest ones due to the higher probability that insiders carried out earnings management. Our results confirm such hypothesis. This paper could have implications for academics and standard setters that could learn that behind accounting discretion, insiders could opportunistically behave against outsiders.

The Impact of CEO' Compensation Incentive on the Future R&D Investment of the Company

2019 ◽  
Vol 33 (2) ◽  
pp. 193-210
Author(s):  
Seho Kwon ◽  
◽  
YoungJun Kim
Keyword(s):  
Ceo Compensation ◽  
The Future ◽  
The Impact ◽  
D Investment

An Analysis of Time-Lag Effects of R&D Investment and Patents - The Difference by the Level of Industry Technology -

2018 ◽  
Vol 32 (2) ◽  
pp. 217-241
Author(s):  
Ji-Hyun Song ◽  
Keyword(s):  
Time Lag ◽  
Lag Effects ◽  
The Difference ◽  
D Investment

DID PUBLIC CASH TRANSFER CROWD OUT INTER-HOUSEHOLD TRANSFERS IN INDONESIA? EVIDENCE FROM "BANTUAN LANGSUNG TUNAI /BLT"

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 67-84
Author(s):  
Corry Wulandari ◽  
Nadezhda Baryshnikova
Keyword(s):  
Cash Transfer ◽  
Poor People ◽  
Crowding Out ◽  
Transfer System ◽  
Transfer Program ◽  
Exact Matching ◽  
The Public ◽  
Indonesia Family Life Survey ◽  
Public Transfers ◽  
The Government

In 2005 the Government of Indonesia introduced an unconditional cash transfer program called the ‘Bantuan Langsung Tunai’ (BLT), aimed at assisting poor people who were suffering from the removal of a fuel subsidy. There are concerns, however, that the introduction of a public transfer system can negatively affect inter-household transfers through the crowding-out effect, which exists when donor households reduce the amount of their transfers in line with public transfers received from the government. The poor may not therefore have received any meaningful impact from the public cash transfer, as they potentially receive fewer transfers from inter-household private donors. For the government to design a public transfer system, it is necessary to properly understand the dynamics of private transfer behaviour. Hence, this study evaluates whether there exists a crowding-out effect of public transfers on inter-household transfers in Indonesia.Using data from the Indonesia Family Life Survey (IFLS) and by applying Coarsened Exact Matching (CEM) and Difference-in-differences (DID) approaches, this study found that the likelihood to receive transfers from other family members (non-co-resident) reduces when the household receives BLT. However, there is no significant impact of BLT on transfers from parents and friends.

A Study on 17 Metropolitan Local Governments’ R&D Investment Efficiency

2020 ◽  
Vol 15 (2) ◽  
pp. 253-280
Author(s):  
Hyoungsuk Lee ◽  
Hyungjun Seo
Keyword(s):  
Local Governments ◽  
Investment Efficiency ◽  
D Investment
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