Investor sentiment, chairman-CEO duality and R&D investment

Author

Zhaohui Zhu ; WenSheng Huang

Author_Institution

Sch. of Accounting, Zhejiang Gongshang Univ., Hangzhou, China

fYear

2014

fDate

27-31 July 2014

Firstpage

2583

Lastpage

2588

Abstract

With a sample of Chinese listed firms during 2007-2010, the paper studies the impact of the investor sentiment on firm´s R&D investment, and the results suggest that the firms´ management do not catering investor sentiment significantly. But when the study import the variable of chairman-CEO duality and its interaction with investor sentiment, it is suggested that the stock mispricing which induced by investor sentiment and chairman-CEO duality have a positive effect on firms´ R&D investment. Furthermore, the coefficient of the interaction of investor sentiment and chairman-CEO duality is negative significantly, which suggests that the firms with board member act as CEO will cater investor sentiment through R&D investment, while the firms which separate of chairman and CEO will make investment decisions more rationally.

Keywords

investment; organisational aspects; personnel; research and development; Chinese listed firms; chairman-CEO duality; firm R&D investment; investor sentiment; stock mispricing; Educational institutions; Investment; Quantum cascade lasers; Stock markets; Technological innovation;

fLanguage

English

Publisher

ieee

Conference_Titel

Management of Engineering & Technology (PICMET), 2014 Portland International Conference on

Conference_Location

Kanazawa

Type

conf

Filename

6921166