Guest editorial: Institutions and R&D investment: prospects and challenges

• Published in: Journal of applied accounting research Vol. 23; no. 4; pp. 765 - 769
• Main Authors: Uddin, Moshfique, Ashraful Alam, Md, Yazdifar, Hassan
• Format: Journal Article
• Language: English
• Published: Leicester Emerald Publishing Limited 05.07.2022; Emerald Group Publishing Limited
• Subjects: Cash flow; Corruption; Econometrics; Economic crisis; Economic growth; Emerging markets; Enforcement; Innovations; Public companies; R&D; Research & development; Research & development expenditures; Rule of law; Sustainability; Sustainability management
• ISSN: 0967-5426; 1758-8855
• DOI: 10.1108/JAAR-08-2022-309

(2013) that strict investor protection leads to a better chance of accessing the external equity market at a cheaper cost and therefore firms can afford to make more investments in R&D activities. [...]Xiao (2013) stated that legal protection for shareholders reduces the agency conflict and solves the under and over investment problem of R&D activities. (2008) state that institutional quality in emerging markets is significantly different from developed markets. [...]it is imperative to examine the effect of institutions on R&D investment from the context of emerging markets. Using appropriate and robust econometric techniques, the paper has found that political instability, the burden of labor regulations, rule of law, the presence of corruption and the quality of tax administration influence the extent of R&D investments in those countries. [...]the paper has found that firm-level cash flow and access to external finance also significantly affect firm-level R&D investments. [...]the study observed a negative effect of long-term R&D investments on firms' performance, indicating that high levels of corruption harm even more long-term innovative activities.