The crowding-out effect of shareholder value-based CEO compensation on R&D investment in the European context: a new interpretation

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dc.authoridDoruk, Omer Tugsal/0000-0002-2382-1042
dc.contributor.authorDoruk, Omer Tugsal
dc.date.accessioned2025-01-06T17:37:13Z
dc.date.available2025-01-06T17:37:13Z
dc.date.issued2023
dc.description.abstractPurpose In the present study, using a novel fractional logit model, the link between R&D (Research & Development) investment and shareholder value-based CEO (Chief Executive Officer) compensation has been examined within the non-financial sector in the Euro area economies using a firm-level dataset for 2002-2019. Design/methodology/approach The fractional logit model is utilized to examine the effects of corporate payment on R&D investment. The fractional logit model can be considered the empirical approach that takes into account R&D non-performer firms to avoid reducing the sample size. The fractional logit model is superior to the censored or truncated models, like Tobit, since the fractional logit model is useful to address the econometric limitations that are found in the censored and truncated models in the non-linear models. Findings The findings obtained in this study showed a significant and negative effect of short-term aim-based CEO payment on R&D expenditures in the Euro area economies using firm-level data. These findings are robust to different robustness checks and modeling alternatives. Originality/value To the author's knowledge, there is no study that examines the effects of short-term shareholder value maximization-based CEO compensation on R&D in the European context in the literature.
dc.identifier.doi10.1108/K-02-2022-0258
dc.identifier.endpage6589
dc.identifier.issn0368-492X
dc.identifier.issn1758-7883
dc.identifier.issue12
dc.identifier.scopus2-s2.0-85139228095
dc.identifier.scopusqualityQ1
dc.identifier.startpage6572
dc.identifier.urihttps://doi.org/10.1108/K-02-2022-0258
dc.identifier.urihttps://hdl.handle.net/20.500.14669/2144
dc.identifier.volume52
dc.identifier.wosWOS:000863479300001
dc.identifier.wosqualityQ3
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherEmerald Group Publishing Ltd
dc.relation.ispartofKybernetes
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_20241211
dc.subjectCorporate payment
dc.subjectR&D
dc.subjectThe Euro area economies
dc.subjectFirm-level R&D expenditures
dc.titleThe crowding-out effect of shareholder value-based CEO compensation on R&D investment in the European context: a new interpretation
dc.typeArticle

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