Examining the Relationship between Firm Scale, Managerial Discretion, and R&D Expenditure: Evidence from Chinese Listed Companies

Abstract

This research investigates the relationship among firm scale, managerial discretion, and research and development (R&D) expenditure, focusing on Chinese listed companies. Through an empirical analysis of financial data and managerial characteristics, the study aims to examine how firm size and managerial discretion influence R&D investment decisions in Chinese corporate contexts. The research explores the extent to which larger firms and managers with higher levels of discretion allocate resources towards R&D activities. Additionally, the study examines the moderating effects of industry dynamics, regulatory environment, and market competition on the relationship between firm scale, managerial discretion, and R&D expenditure. By providing empirical evidence from Chinese listed companies, this research contributes to understanding the drivers and determinants of R&D investment behavior in emerging market economies.