The Impact of Performance Gap Effect on R&D Intensity����An Empirical Analysis Based on the Listed Companies in China
WANG Jing1, XU Xiao-qin2, SUN Yuan-xin3
1.School of Economy and Management, Zhejiang University of Technology, Hangzhou 310023,China; 2.School of International Business Administration, Shanghai University of Finance & Economics, Shanghai 200433, China; 3.Shanghai Academy of Development, Shanghai University of Finance & Economics, Shanghai 200433, China
Abstract��
In this paper, the author theoretically and empirically examines the effect of pressure which generated from the performance relative to analyst forecasts on R&D intensity. The author proposes that managers tend to cut R&D expenses when they are under pressure to meet analyst forecasts. We further argue that institutional investors�� shareholding and analyst coverage can serve as an external monitoring mechanism to help contain this agency problem. Institutional investors�� shareholding and analyst coverage weakens the negative relationship between performance gap and firm R&D intensity.
WANG Jing, XU Xiao-qin, SUN Yuan-xin.The Impact of Performance Gap Effect on R&D Intensity����An Empirical Analysis Based on the Listed Companies in China[J] Economic Survey, 2016,V33(1): 120-125
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