The Effect of Corporate Governance Practice on R&D Expenditures: An Application on the Chemical Industry
Chapter from the book:
Kırcı Altınkeski,
B.
&
Buğan,
M.
F.
(eds.)
2023.
Evolution of Financial Markets: Banking, Risk Management, Markets and Institutions.
Synopsis
Corporate governance is a concept that coordinates the relations between business managers and partners and minimizes the costs that may arise from agency problems. Corporate governance practices can facilitate the responsibilities and decisions of managers regarding the realization of investments such as strategic, long-term, high cost, intensive labour and discipline, but the profitability of failure, such as R&D expenditures. Although corporate governance practices and R&D relationship are a frequently studied subject in the international finance literature, no study has been found in the Turkish sample, especially in the chemical sector. The chemical sector is a special sector that offers raw materials to many sectors such as textile, health, cosmetics, etc. and directly affects the activities of other sectors. The aim of this study is to examine the effect of corporate governance practices on R&D expenditures in the sample of the chemical industry in Turkey. As a result of the research, it was found that the number of board members, the ratio of female members of the board of directors and the largest shareholder ratio were negatively related to R&D expenditures, while borrowing was positively related to R&D expenditures.
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Copyright (c) 2023 Emine Beyza Satoğlu- Batuhan Medetoğlu- Selahattin Bektaş- Meltem Keskin- Fikri Kaplan- Akile Demirsıkan- Yavuz Demirdöğen- Remzi Gök- İsmail Tuna- Mevlüt Camgöz- Mehmet Göl- Mehmet Bükey- Emrah Keleş- Gizem Vergili- Hasan Alpago- Adem Ruhan Sönmez- Muhammed Emin Durmuş- Bilal Akkaynak; Buket Kırcı Altınkeski- Mehmet Fatih Buğan