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Financial characteristics, ceo characteristics, research and development investment and firm performance

Nadhirah, Mohd Niza @ Mohd Nizal (2018) Financial characteristics, ceo characteristics, research and development investment and firm performance. Masters thesis, Universiti Utara Malaysia.

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Abstract

The government of Malaysia, once again, had pointed out the importance of productivity and innovation in the Eleventh Malaysia Plan (2016-2020). The issue on research and development had become alarming when only three percent of the amount of research and development had been successfully commercialized. Hence, this study aimed to examine the relationship between financial characteristics (leverage and cash flow), CEO characteristics (CEO duality, CEO financial expertise, CEO age), and research and development investment on firm performance (ROE and return index) based on the agency theory, the stewardship theory and the upper echelon theory. The sample companies were based on non-financial listed companies which had been actively involved in research and development activities from 2014 to 2016. The fixed effects panel data regression was used to analyze the data. Based on 183 firm-year observations, the results revealed a significant relationship between leverage, CEO duality, and research and development investment and firm performance as represented by ROE and return index. Even though cash flow and CEO financial expertise had a significant relationship with ROE, it did not have any significant relationship with return index. Meanwhile, CEO age did not have any significant relationship with ROE, but it had a positive and significant relationship with return index. The result also showed the control variable, namely market value, had a significant relationship with firm performance (ROE and return index). The findings of this study offer a better insight into the importance of CEO attributes and their implication on firm performance. Additionally, they provide an understanding of the contribution of research and development investments towards firm‟s overall performance.

Item Type: Thesis (Masters)
Supervisor : Abdul Latif, Rohaida
Item ID: 8175
Uncontrolled Keywords: Financial characteristics, chief executive officer characteristics, research and development investment, firm performance.
Subjects: H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 22 Apr 2021 02:33
Last Modified: 16 Feb 2022 01:01
Department: Othman Yeop Abdullah Graduate School of Business
Name: Abdul Latif, Rohaida
URI: https://etd.uum.edu.my/id/eprint/8175

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