THE MODERN EFFECT OF SLACK RESOURCES BETWEEN PERFORMANCE EXPECTATION GAP AND R&D INVESTMENT, A STUDY OF CHINESE A-SHARES LISTED MANUFACTURING COMPANIES
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Abstract
This paper studied the relationship between a firm’s performance expectation gap and R&D investment, and analyzed the moderating effect of slack resources on the above link, and finally proposed reasonable suggestions for listed manufacturing companies in China to improve their core competitiveness and promote their effective use of resources. Based on empirical testing of panel data consisting of 5,142 observations of 732 manufacturing listed companies in China's A-share from 2011 to 2017, the following conclusions were drawn: The gap of performance expectation was negatively correlated with the intensity of the R&D investment. The moderating effect of slack resources on above relationship varied with the level of resource holdings. The conclusions revealed the characteristics of a firm’s R&D investment in response to different performance feedback signals. They expanded the limitations of previous researches focusing on the simple linear moderation of slack resources.
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Chinese Journal of Social Science and Management Editorial Division
The Office of Research and Development, Panyapiwat Institute of Management
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