Title: Role of R&D expenditure, CEO compensation and financial ratios for country's economic sustainability and innovative growth

Authors: Raminta Benetyte; Javier Giner Rubio; Bohdan Kovalov; Nadiya Matviychuk-Soskina; Rytis Krusinskas

Addresses: School of Economics and Business, Kaunas University of Technology, Kaunas, Lithuania ' Department of Economy, Accounting and Finance, University of La Laguna, San Cristóbal de La Laguna, Santa Cruz de Tenerife, Spain ' Department of Economics, Entrepreneurship and Business Administration, Sumy State University, Sumy, Ukraine ' Institute of Society Transformation, Kyiv, Ukraine ' School of Economics and Business, Kaunas University of Technology, Kaunas, Lithuania

Abstract: In this paper, we combine to evaluate interrelation of the financial performance indicators of companies from different European countries, rewards paid to CEO (compensation), companies' research and development (R&D) expenditure, changes in sustainability and innovativeness of country's economy. In this paper, economic sustainability is treated as economic growth in a long-term perspective, based on long-term value-added innovations. In this perspective, companies are one of the main sources in delivering financial/economic value from innovation for the country. That is why there are ongoing discussions to determine the links between companies' R&D, managers making risky decisions and countries economic development. The results of our research reflect the assumptions that companies' efficiently managed financial resources and financially motivated top-level managers targeting to accept the risk for R&D can contribute not only to increasing of company's economic potential, but also to the sustainability of a country's economy. These results reflect the assumptions that companies' efficiently managed financial resources and financially motivated top-level managers targeting to accept the risk for R&D can contribute not only to increasing of company's economic potential, but also to the sustainability of a country's economy.

Keywords: business financial performance; R&D expenditure; economic sustainability; innovation of country.

DOI: 10.1504/IJGEI.2021.115147

International Journal of Global Energy Issues, 2021 Vol.43 No.2/3, pp.228 - 246

Received: 15 Oct 2019
Accepted: 29 Aug 2020

Published online: 07 May 2021 *

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