How R&D expenditures affect firm risk with CEO stock ownership cash holding and employee turnover? –a case in Taiwan

Abstract

There are many studies that have documented about the R&D expenditures to the firm risk so we include other variables to further understand the impacts of R&D expenditures to the firm risk We study that the influence of the interactions between CEO stock ownership and R&D expenditures and the interactions between Cash holding and R&D expenditures to the firm risk under the employee turnover The result shows that the variable of interactions between the CEO stock ownership and R&D expenditures is negatively associated with the firm risk under the colossal employee turnover Although the investors don’t know what exactly the veracious impacts of colossal employee turnover influence on the company the CEO with higher proportion of shares will reduce the misgivings of the investors It implies that the possibility of the CEO with higher proportion of shares which invest in valuable R&D projects under the colossal employee turnover is high because the CEO with higher proportion of shares will reduce the agency problem (Jensen & Meckling 1976)

Date of Award	2019
Original language	English
Supervisor	Tse-Shih Wang (Supervisor)