Title: Reexamining the relationship between CEO ownership and R&D investment by considering the contextual effects

Authors: Bich-Ngoc Thi Le; Cheng-Yu Lee

Addresses: Southern Taiwan University of Science and Technology, No. 1, Nantai St., YongKang Dist., Tainan City 710, Taiwan ' Southern Taiwan University of Science and Technology, No. 1, Nantai St., YongKang Dist., Tainan City 710, Taiwan

Abstract: Despite the agency theory prescribes risk alignment effect of corporate governance through CEO ownership, the empirical inquiries into the relationship between CEO ownership and corporate risk-taking thus far yielded a mixed result. This study aims to examine the nuances of such a relationship in the presence of financial slack and technological opportunities by contingency models. The study employs the secondary data in a sample of S&P 1500 from 2006 to 2018. According to empirical results, this study finds that both financial slack and technological opportunities positively moderate the CEO ownership-R&D investment relationship.

Keywords: behavioural agency theory; CEO ownership; R&D investment; financial slack; technological opportunities.

DOI: 10.1504/IJBIR.2021.119591

International Journal of Business Innovation and Research, 2021 Vol.26 No.3, pp.350 - 365

Received: 09 Sep 2019
Accepted: 01 Dec 2019
Published online: 09 Dec 2021 *

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