TY - JOUR
T1 - Transactional-institutional fit
T2 - Corporate governance of R&D investment in different institutional contexts
AU - James, Barclay E.
AU - McGuire, Jean B.
N1 - Publisher Copyright:
© 2016 Elsevier Inc.
PY - 2016/9/1
Y1 - 2016/9/1
N2 - Management research has a rich history devoted to understanding how different types of equity holders facilitate effective governance of investment in research and development (R&D). But scant research exists on understanding how different types of debt effectively govern R&D investment and virtually no research exists on this topic across institutional contexts. Yet, similar types of transactions differ across institutional contexts. This study develops and tests a transactional-institutional fit view of debt governance of R&D investment, grounded in transaction cost economics, which examines the alignment or fit between bank loan debt, bond debt, and R&D investment in bank-based and market-based countries. Analyses of 7943 firms across 12 countries from 1997-2010 support the key proposition: in bank-based (market-based) countries, higher levels of bank loan debt coupled with higher levels of R&D investment increase (decrease) firm performance.
AB - Management research has a rich history devoted to understanding how different types of equity holders facilitate effective governance of investment in research and development (R&D). But scant research exists on understanding how different types of debt effectively govern R&D investment and virtually no research exists on this topic across institutional contexts. Yet, similar types of transactions differ across institutional contexts. This study develops and tests a transactional-institutional fit view of debt governance of R&D investment, grounded in transaction cost economics, which examines the alignment or fit between bank loan debt, bond debt, and R&D investment in bank-based and market-based countries. Analyses of 7943 firms across 12 countries from 1997-2010 support the key proposition: in bank-based (market-based) countries, higher levels of bank loan debt coupled with higher levels of R&D investment increase (decrease) firm performance.
KW - Bank-based system
KW - Corporate governance
KW - Institutional context
KW - Market-based system
KW - R&D investment
KW - Transaction cost economics
UR - http://www.scopus.com/inward/record.url?scp=84957894967&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2016.01.038
DO - 10.1016/j.jbusres.2016.01.038
M3 - Artículo
AN - SCOPUS:84957894967
SN - 0148-2963
VL - 69
SP - 3478
EP - 3486
JO - Journal of Business Research
JF - Journal of Business Research
IS - 9
ER -
