Proceedings of the International Conference on Emerging Challenges: Strategic Adaptation in The World of Uncertainties (ICECH 2022)

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Does R&D Always Support Sustainable Growth? Evidence from an Emerging Economy

Authors
Thuy Van Vu Thi1, *, Thuy Do Thi Thu1, Le Dao Thi Nhat2
1School of of Banking and Finance, National Economics University, Hanoi, Vietnam
2Audience Serv Co. Ltd., Hanoi, Vietnam
*Corresponding author. Email: thuyvan@neu.edu.vn
Corresponding Author
Thuy Van Vu Thi
Available Online 23 May 2023.
DOI
10.2991/978-94-6463-150-0_24How to use a DOI?
Keywords
Emerging economy; Sustainable growth; R&D
Abstract

This paper aims to investigate the relationship between sustainable growth rate (SGR) and research and development activities (RD) in an emerging economy. Along with the development of information technology and the explosion of creativity, we want to evaluate the impact of RD on the development of the business. We use panel regression techniques to examine a sample of 767 Vietnam-listed companies from 2008–2020. The empirical results show a negative impact of RD on SGR, meaning that investment in the RD of the existing business does not provide the benefit of value growth. Existing RD strategies may represent only firms’ innovation efforts. This confirms that managers need to consider and evaluate more clearly the contribution of research and development to different categories. Besides, the control variables in the model, including SIZE (the natural logarithm of total assets), ROA (returns on assets ratio), STATE (the percentage of ownership in the firm held by state), LV (Financial leverage ratio that equals total debt borrowings scaled by lagged total assets), DUALCFO (Dual CFO-COO in firm management), and CF (the ratio of total cash flow to total assets), are statistically significant. This finding has practical implications for enterprises investing in technology and policymakers to improve production and business activities’ scientific and technological capacity .

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Emerging Challenges: Strategic Adaptation in The World of Uncertainties (ICECH 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
23 May 2023
ISBN
10.2991/978-94-6463-150-0_24
ISSN
2352-5428
DOI
10.2991/978-94-6463-150-0_24How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Thuy Van Vu Thi
AU  - Thuy Do Thi Thu
AU  - Le Dao Thi Nhat
PY  - 2023
DA  - 2023/05/23
TI  - Does R&D Always Support Sustainable Growth? Evidence from an Emerging Economy
BT  - Proceedings of the International Conference on Emerging Challenges: Strategic Adaptation in The World of Uncertainties (ICECH 2022)
PB  - Atlantis Press
SP  - 360
EP  - 373
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-150-0_24
DO  - 10.2991/978-94-6463-150-0_24
ID  - VanVuThi2023
ER  -