Business Strategy and R&D Expenditures

Han Li


This research testifies that there is a positive relationship between business strategy and R&D expenditures based on the data from the listed firms in China. The paper also finds that the management myopic behaviour would make the firms reduce the R&D spending when the strategy score is in the higher level. Furthermore, the research shows the positive relationship between strategy and R&D expenditures still exits when the firms are SOEs and the firms have medium or high level of internal control quality. The result is robustness even after making the endogeneity tests.

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International Journal of Financial Research
ISSN 1923-4023(Print)ISSN 1923-4031(Online)


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