| CEO Self-regarding Value and Firms’ R&D Investment: The Contingent Effects of Internal Interest Alignment and External Environmental Uncertainty |
Received:October 15, 2017 Revised:October 15, 2017 |
Key Words: Self-regarding Value, R&D investment, Long-term Orientation, Interest Alignment, Environmental Uncertainty |
| Author Name | Affiliation | | Rui Shen* | Peking University | | Wei Zheng | Peking University |
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Abstract: |
| Drawing from the upper echelon theory and agency theory, we aim to examine how CEO self-regarding value exerts influence on firm R&D investment by revealing the underlying mechanism and the boundary conditions. Using a longitudinal survey data sampling 436 firms in China, we find that CEO self-regarding value is negatively related to firm R&D investment and the negative relationship was mediated by firm long-term orientation. Moreover, our results show that both the internal interest alignment and external environmental uncertainty mitigate the negative effect of CEO self-regarding value on R&D investment via long-term orientation. We stimulate several practical implications based on our empirical findings. |
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