{"title":"The firms’ perception of global uncertainty and R&D investment: Evidence from China","authors":"Bing Lu , Wanwan Ren , Wenge Liu","doi":"10.1016/j.ribaf.2024.102578","DOIUrl":null,"url":null,"abstract":"<div><p>This study explores how the firms’ perception of global uncertainty (FGU) affects R&D investment of listed firms in China. Our analysis is rooted in the understanding and measurement of FGU. Consistent with the theory of strategic growth, we find a significantly positive correlation between FGU and R&D investment. We further elucidate the mechanism underlining this correlation. When FGU increases, financing and labour resources are shifted towards R&D activities, promoting R&D investment. We also examine and explain how this correlation is magnified for firms in less competitive industries, those with higher tangible asset ratios, those related to states, and those with lower deleveraging levels. Finally, we divide FGU into five categories and investigate which subcomponent of FGU has the relatively greatest impact on R&D investment. FGU related to criminal and political events has a greater influence on R&D investment than other types of FGU.</p></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"73 ","pages":"Article 102578"},"PeriodicalIF":6.3000,"publicationDate":"2024-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531924003714","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study explores how the firms’ perception of global uncertainty (FGU) affects R&D investment of listed firms in China. Our analysis is rooted in the understanding and measurement of FGU. Consistent with the theory of strategic growth, we find a significantly positive correlation between FGU and R&D investment. We further elucidate the mechanism underlining this correlation. When FGU increases, financing and labour resources are shifted towards R&D activities, promoting R&D investment. We also examine and explain how this correlation is magnified for firms in less competitive industries, those with higher tangible asset ratios, those related to states, and those with lower deleveraging levels. Finally, we divide FGU into five categories and investigate which subcomponent of FGU has the relatively greatest impact on R&D investment. FGU related to criminal and political events has a greater influence on R&D investment than other types of FGU.
期刊介绍：
Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance
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