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To study moderating role of ownership structure on R&D expenditure policies on accounting performance and market value

Ali Ostadhashemi

Department of Accounting, Payam Noor University, Iran

E-mail Address: ostad1976@yahoo.com

Corresponding author.

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Muhammad Esmaeil Fadaei Nejad

Faculty of Accounting and Management, Shahid Beheshti University, Tehran, Iran

E-mail Address: m-fadaei@sbu.ac.ir

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https://doi.org/10.1142/S2424786319500038Cited by:0 (Source: Crossref)

Abstract

There is possible to develop plans and programs of firms in future via increasing R&D programs and policies and this issue can have effect on financial performance and market value of firms. Based on the argument, the present research tries to study the moderating role of ownership structure on R&D expenditure policies on accounting performance and market value of firms. For this purpose, two approaches including investmentizing R&D expenditures and R&D intensity were used to measure R&D policy. The research hypotheses were analyzed using a sample with 73 firms listed on Tehran Stock Exchange from 2011 to 2015 using multivariate regression model based on panel data technique. The results of the research indicated that there is a positive significant relationship between investmentizing R&D expenditures with performance and market value of firms and also there is a positive relationship between R&D intensity with performance and market value of firms. Finally, it was determined that institutional ownership of firms can the effect of R&D intensity on performance and market value of firms sustain negatively.

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