Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership

This study examines whether the influence of family ownership on R&D investment varies depending on growth opportunities and business group membership. Using data on Korean firms over ten years (1998-2007), the study shows that family ownership is negatively related to R&D investment, but th...

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Main Authors: Choi, Y.R., Zahra, S.A., YOSHIKAWA, Toru, Han, H.
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Language:English
Published: Institutional Knowledge at Singapore Management University 2014
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/4348
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Institution: Singapore Management University
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spelling sg-smu-ink.lkcsb_research-53472015-03-26T03:36:06Z Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership Choi, Y.R. Zahra, S.A. YOSHIKAWA, Toru Han, H. This study examines whether the influence of family ownership on R&D investment varies depending on growth opportunities and business group membership. Using data on Korean firms over ten years (1998-2007), the study shows that family ownership is negatively related to R&D investment, but the relationship becomes positive when growth opportunities are present. The moderating effect, however, differs between independent family firms and family business groups. The positive influence that growth opportunities have on promoting R&D investment is diminished for affiliates of family business groups. These findings imply that family owners invest more in R&D when their family control goals are threatened by the loss of growth potential. The empirical results of this study and its behavioral decision-making model help to bridge the gap between the predictions of the family control perspective and agency theory in explaining R&D investment by family firms in an emerging economy. 2014-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/4348 info:doi/10.1016/j.jbusres.2014.10.007 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University R&D investment Family ownership Growth opportunities Business groups Behavioral decision-making Business
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic R&D investment
Family ownership
Growth opportunities
Business groups
Behavioral decision-making
Business
spellingShingle R&D investment
Family ownership
Growth opportunities
Business groups
Behavioral decision-making
Business
Choi, Y.R.
Zahra, S.A.
YOSHIKAWA, Toru
Han, H.
Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
description This study examines whether the influence of family ownership on R&D investment varies depending on growth opportunities and business group membership. Using data on Korean firms over ten years (1998-2007), the study shows that family ownership is negatively related to R&D investment, but the relationship becomes positive when growth opportunities are present. The moderating effect, however, differs between independent family firms and family business groups. The positive influence that growth opportunities have on promoting R&D investment is diminished for affiliates of family business groups. These findings imply that family owners invest more in R&D when their family control goals are threatened by the loss of growth potential. The empirical results of this study and its behavioral decision-making model help to bridge the gap between the predictions of the family control perspective and agency theory in explaining R&D investment by family firms in an emerging economy.
format text
author Choi, Y.R.
Zahra, S.A.
YOSHIKAWA, Toru
Han, H.
author_facet Choi, Y.R.
Zahra, S.A.
YOSHIKAWA, Toru
Han, H.
author_sort Choi, Y.R.
title Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
title_short Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
title_full Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
title_fullStr Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
title_full_unstemmed Family Ownership and R&D Investment: The Role of Growth Opportunities and Business Group Membership
title_sort family ownership and r&d investment: the role of growth opportunities and business group membership
publisher Institutional Knowledge at Singapore Management University
publishDate 2014
url https://ink.library.smu.edu.sg/lkcsb_research/4348
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