Prior experience on a subsequent entry and institutional changes on R&D investment

Gang, KwangWook
Thumbnail Image
Other Contributors
Simons, Kenneth L.
Ravichandran, T.
Kumar, M. V. Shyam
Kantor, Shawn Everett
Issue Date
Terms of Use
This electronic version is a licensed copy owned by Rensselaer Polytechnic Institute, Troy, NY. Copyright of original work retained by author.
Full Citation
In the second essay, I examine the impacts of Korean market reforms on innovation investments. The institutional-based view implies that market reforms are important determinants that reshape a firm's strategy. How do changes in the institutional framework influence investment behavior in firms? I focus on Korea's market reforms following the country's 1997 financial crisis. The 1997 financial crisis led to two major changes: enhanced market competition and a more internationally open governance structure within Korean firms. I investigate the effects of market reforms in general, and I then examine enhancing market competition and sound governing structure in innovation investment for Korean firms. The main results provide evidence of positive influences on R&D investment as market reform unfolds. In addition, I find that firm leverage negatively moderated, but that firm size positively moderated the R&D investment growth that occurred as market reform progressed. Additional evidence, which was only available following the market reforms, shows the negative impacts of industry concentration resulting in greater industry competition, and R&D intensity increasing at a decreasing rate with domestic institutional ownership. Furthermore, I find that domestic institutional ownership negatively moderates the benefits of industry competition and of foreign institutional ownership.
August 2013
School of Management
Lally School of Management and Technology
Rensselaer Polytechnic Institute, Troy, NY
Rensselaer Theses and Dissertations Online Collection
Restricted to current Rensselaer faculty, staff and students. Access inquiries may be directed to the Rensselaer Libraries.