Advanced SearchSearch Tips
The empirical study on relationship between agency problem and beneficiary`s performance
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
The empirical study on relationship between agency problem and beneficiary`s performance
Yang, Dong-Woo; Choi, Woo-Seok;
  PDF(new window)
This study examines whether there is agency cost in a public R&D subsidy program by applying agency theory. If there is agency cost, the composition ratio of the government subsidy and the firm`s own R&D fund would have a significant (-) effect on technological performance. Companies that received a public R&D subsidy in Korea from 2000 to 2009 were selected as a sample. Frequency analysis and multiple regression analysis were used. The independent variables was the ratio of public R&D subsidy cost to the Firm`s own R&D cost, and the dependent variables were the number of patent applications and the number of patents registered. The control variables were firm size and R&D cost. The results show that there are agency problems in the government-sponsored R&D system. A future study is needed to examine how much agency problems deteriorate the efficiency of the system.
Moral Hazard;Agency Cost;Public R&D Subsidy;Technological Performance;
 Cited by
Oh, Youn-jung, An, Byeong-Min, Jeong, Go-Eun, "KISTEP Statistic Brief", Vol.24, p. 3, KISTEP, 2014.

Caerteling, C.S. et al., "How Relevant Is Government Championing Behavior in Technology Development?", Journal of Product Innovation Management, 30(2), pp.349-363, 2013. DOI: crossref(new window)

Shu, C, et al., "Firm Patenting, Innovations, and Government Institutional Support as a Double-Edged Sword", Journal of Product Innovation Management, 32(2), pp. 290-305, 2015. DOI: crossref(new window)

Sungmin Park, "Evaluating the efficiency and productivity change within government subsidy recipients of a national technology innovation research and development program", R&D Management, 45(5), pp.549-568, 2015. DOI: crossref(new window)

Hong, J. et al., "Government grants, private R&D funding and innovation efficiency in transition economy", Technology Analysis & Strategic Management, 27(9), pp. 1068-1096, 2015. DOI: crossref(new window)

Monica Merito, Silvia Giannangeli, Andrea Bonaccorsi, "Do incentives to industrial R&D enhance research productivity and firm growth? Evidence from the Italian case", International Journal of Technology Management, 49(1-3), pp. 25-48, 2010. DOI: crossref(new window)

Ming Feng Tang, Jaegul Lee, Kun Liu, Yong Lu, "Assessing government-supported technology-based business incubators: evidence from China", International Journal of Technology Management, 65(1-4), pp.24-48, 2014. DOI: crossref(new window)

Jensen, M.C. and W.H. Meckling, "Theory of the Fimr: Managerial Behavior, Agency Costs and Ownership Structure", Journal of Financial Economics, pp. 305-360, October, 1976. DOI: crossref(new window)

Fama, E. and Jensen, M., "Seperation of ownership and control", Journal of Law and Economics, pp. 301-326, June, 1983. DOI: crossref(new window)

Zajac, E.J. and Westphal, J.D., "The costs and benefits of managerial incentives and monitoring in large U.S. corporations: When is more not better?", Strategic Management Journal, Vol. 15, pp. 121-142, 1994. DOI: crossref(new window)

Bilter, M.P., T. J. Moskowitz, and A. Vissing-Jorgensen, "Testing Agency Theory with Entrepreneur Effort and Wealth", Jounal of Finance, 90(2), pp. 539-576, 2005.

Demsetz, H., "The structure of ownership and the theory of the firm", Journal of Law and Economics, pp. 375-393, June, 1983. DOI: crossref(new window)

Stulz, R., "Managerial control of voting rights, financing policies and the market for corporate control", Journal of Financial Economics, Vol. 20, pp. 25-54, 1998. DOI: crossref(new window)

Morck, R., Shleifer, A., and Vishnny, R., "Management ownership and market valuation: An empirical analysis", Journal of Financial Economics, Vol. 20, pp.293-315, 1988. DOI: crossref(new window)

Mc Connell, John and Henri Servaes, "Additional evidence on equity ownership and corporate value", Journal of Financial Economics, Vol. 27, pp. 595-612, 1996. DOI: crossref(new window)

Benjamin E. Hermalin and Michael S. Weisbach, "The Effects of Board Composition and Direct Incentives on Firm Performance", Financial Management Vol. 20, No. 4, pp. 101-112, 1991. DOI: crossref(new window)

Busom, I., "An Empirical Evaluation of the Effects of R&D Subsidies", Economics of Innovation and New Technology, 9(2), pp. 111-148, 2000. DOI: crossref(new window)

Gonzalez, X. & C. Pazo, "Do Public Subsidies Stimulate Private R&D Spending?", Research Policy, Vol. 37. pp. 371-389, 2008. DOI: crossref(new window)