Corporate Philanthropy, R&D Spending and the Mitigating Effect of Financial Resources:Based on the Perspective of the Interactions between Strategies

Abstract

Abstract:

Based on the samples of Chinese high-tech firms listed during the period from 2008 to 2013, we investigate the relationship between corporate philanthropy and R&D spending and attempt to explain why and how it happens. We find that there is a negative rela-tionship between corporate philanthropy and R&D spending, even if the R&D spending is deferred, which is attributed to the limitation of strategy resource. Further, we investigate the mitigating impact of financial resource. The results show that this negative relationship is more aggressive in the firms with more financial slack or less financial constraint. This study sheds a new light on the theory of corporate strategy and the antecedent of R&D spending and also has some important implications to the policy makers.

Key words: corporate philanthropy, R&D spending, resource slack, corporate strategy

Shen Yi, Xu Guanghua, Qian Ming. Corporate Philanthropy, R&D Spending and the Mitigating Effect of Financial Resources:Based on the Perspective of the Interactions between Strategies[J]. , 2018, 30(2): 159-171.

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