Corporate Restructuring and R&D: A Panel Data Analysis for the Chemical Industry
Duke University - Fuqua School of Business; National Bureau of Economics Research
Scheller College of Business, Georgia Tech
Marco Da Rin
Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research; Tilburg University - Department of Finance; Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI)
IGIER Working Paper No. 173
We contribute a novel approach to the existing literature on the effects of restructuring on R&D investment by focussing on a single industry, chemicals. The chemical industry is very research intensive and has experienced thorough restructuring since the early 1980s. By focussing on a single industry we are able to identify the technological and R&D features of its segments. This is important, since there is evidence that restructuring affects R&D differently in businesses with different technological features. However, no study so far has provided a systematic inquiry into this link. Using a panel of 535 European, American, and Japanese firms for the years 1987-1997 we find restructuring to be an important component in the observed changes in R&D intensity. We show that restructuring affects R&D both through changes in size and through changes in the composition of business portfolios, and that these effects differ across industry segments.
Number of Pages in PDF File: 32
JEL Classification: G34, L65, O32working papers series
Date posted: March 1, 2001
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo3 in 1.313 seconds