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Corporate Governance, Investment in Research and Development and Company Performance: A Data Envelopment Analysis Approach Based on Data from a Developing Country

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Listed:
  • Mohammad-Hossein Setayesh

    (Department of Accounting, Shiraz University, Shiraz, Iran,)

  • Gholamreza Rezaei

    (Department of Accounting, Shiraz University, Shiraz, Iran,)

  • Mostafa Kazemnezhad

    (Department of Accounting, Shiraz University, Shiraz, Iran)

Abstract

The aim of this paper is to investigate the role of investment in research and development (R and D) in relationship between corporate governance (CG) and company performance in the Tehran Stock Exchange. In this regard, ownership concentration and debt ratio were used as the criteria for CG. The statistical population included all companies listed in Tehran Stock Exchange, 161 of which were selected as the statistical sample and investigated from 2004 until 2014. The statistical regression analysis of mixed data in the Baron and Kenny model (1986) and hierarchical regression analysis were employed to test the research hypotheses. The results indicated that CG was a factor influencing company performance and R and D activities. The results also indicated that investment in R and D improved company performance. Furthermore, the research evidence showed a minor role for the R and D investment variable in mediating the relationship between CG and company performance, and thus could not play a moderating role in this relationship

Suggested Citation

  • Mohammad-Hossein Setayesh & Gholamreza Rezaei & Mostafa Kazemnezhad, 2016. "Corporate Governance, Investment in Research and Development and Company Performance: A Data Envelopment Analysis Approach Based on Data from a Developing Country," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1114-1122.
    • Handle: RePEc:eco:journ1:2016-03-38
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    More about this item

    Keywords

    Ownership Concentration; Debt Ratio; Company Performance; Investment in Research and Development;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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