TY - JOUR
T1 - Corporate governance structure, financial capability, and the R&D intensity in Chinese sports sector
T2 - Evidence from listed sports companies
AU - Chen, Gang
AU - Zhang, James J.
AU - Pifer, N. David
N1 - Publisher Copyright:
© 2019 by the authors.
PY - 2019/12/1
Y1 - 2019/12/1
N2 - Innovations are the foundation of an enterprise's sustainable development, which is particularly important for sports firms in an evolving Chinese sport industrial environment. Analyzing publicly-listed sports firms on The New Third Board (NTB) in China, this study examined the influence of corporate financial capability and corporate governance structure on firms' R&D intensity through a series of multiple regression models. Findings revealed that corporate financial capability is an important determinant of R&D intensity, and corporate governance structure has a small but meaningful effect on R&D intensity. Specifically, for Chinese sports firms, several financial capability indicators, such as return on equity, accounts receivable turnover, assets turnover, and profit growth rate, have positive relationships with R&D intensity; however, other financial capability indicators, such as leverage and cash flow, have negative relationships with R&D intensity. Limited evidence was found to support the notion that corporate governance significantly influences R&D intensity, although sports firms with good governance mechanisms are more likely to increase the positive effects of financial capabilities on R&D intensity while decreasing the negative effects. Discussions were centered on planning and executing R&D activities in sports companies.
AB - Innovations are the foundation of an enterprise's sustainable development, which is particularly important for sports firms in an evolving Chinese sport industrial environment. Analyzing publicly-listed sports firms on The New Third Board (NTB) in China, this study examined the influence of corporate financial capability and corporate governance structure on firms' R&D intensity through a series of multiple regression models. Findings revealed that corporate financial capability is an important determinant of R&D intensity, and corporate governance structure has a small but meaningful effect on R&D intensity. Specifically, for Chinese sports firms, several financial capability indicators, such as return on equity, accounts receivable turnover, assets turnover, and profit growth rate, have positive relationships with R&D intensity; however, other financial capability indicators, such as leverage and cash flow, have negative relationships with R&D intensity. Limited evidence was found to support the notion that corporate governance significantly influences R&D intensity, although sports firms with good governance mechanisms are more likely to increase the positive effects of financial capabilities on R&D intensity while decreasing the negative effects. Discussions were centered on planning and executing R&D activities in sports companies.
KW - Corporate financial capability
KW - Corporate governance structure
KW - Listed sports enterprises in new three-board in China
KW - Policy effectiveness
KW - R&D intensity
UR - http://www.scopus.com/inward/record.url?scp=85076694452&partnerID=8YFLogxK
U2 - 10.3390/su11236810
DO - 10.3390/su11236810
M3 - Article
AN - SCOPUS:85076694452
SN - 2071-1050
VL - 11
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 23
M1 - 6810
ER -