Business Strategies and Disclosure of Research and Development Activities

Document Type : Sterategic Management

Authors

1 Assistant Prof, Accounting, University of Mazandaran

2 Master of Accounting,University of Mazandaran, Babolsar, Iran

Abstract

The company's business strategy reflects how the company is competitive in the company's chosen market. The company can, in order to strengthen its business strategy, adopt a set of policies and activities that will enable them to gain a sustainable competitive edge in their preferred market. As the company's strategies affect the company's research and development activities, the strategy that the company chooses can also affect the amount of disclosure by the company. Therefore, in this research, the effect of commercial strategies on the disclosure of research and development activities has been studied. The required data of this study were collected from 86 member companies of Tehran Stock Exchange during the period of 2011-2016 with the help of RahAward software and Tehran Stock Exchange website. In this research, a checklist was used to measure the disclosure of research and development activities. The statistical technique used to test hypotheses is multivariate regression. Research findings in relation to the first hypothesis test show that the differentiation strategy has a significant positive effect on disclosure of research and development activities. Also, the findings of the second hypothesis show that cost leadership strategy has a negative and significant effect on the disclosure of research and development activities. These findings can be useful for managers and policymakers to decide on and plan regular programs in order to select the type of company's strategies.

Keywords

Main Subjects

References

-          Aboody, D. & Lev, B.(2000). Information Asymmetry, R&D, and Insider Gains. The Journal of Finance, Vol. 6.
-          Amoako-Gyampah K. & Acquaah M. (2008). Manufacturing Strategy, Competitive Strategy and Firm Performance: an Empirical Study in a Developing Economy Environment. International of Prouduction Economics. Vol. 111, pp: 575-592.
-          Anousheh, Sh. (2011), Effect of Research and Development Expenditures on Economic Growth by Investor Sectors (A Case Study of OIC Organizations). Quarterly Journal of Applied Economics, Second year, Seventh, pp. 3-1 (In Persian).
-          Asdemir, O., Fernando, G. D., & Tripathy, A. (2013). Market Perception of Firm Strategy. Managerial Finance, 39(2), 90-115.
-          Ballas, A., Naoum, V. C., & Vlismas, O. (2016). The Effect of Strategy and Managerial Ability on Asymmetric Cost Behavior.
-          Banker, R. D., Flasher, R., & Zhang, D. (2013). Strategic Positioning and Asymmetric Cost Behavior.
-          Bently, K., Omer, T., & Twedt, B. (2014). Does Business Strategy Impact a Firm’s Information Environment?. Journal of Accounting, Auditing & Finance.
-          Botosan, C. A. (1997). Disclosure Level and the Cost of Equity Capital. Accounting Review, pp. 323-349.
-          Claver- Cortés, E., Pertusa- Ortega n, E.M. and Molina- Azorín, J.F., (2012). Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance. Journal of business Reserch, 25(4), pp. 933-1002.
-          Claver-Cortés, E, Pertusa - Ortega, E.M and Molina-Azorin, J.F., (2011). Estructura organizativa y resultado empresarial: Un análisis empírico del papel mediador de la estrategia. Cuadernos de Economía y Dirección de la Empresa,14(1), pp. 2–13.
-          Dainelli, F., Bini, L. & Giunta, F. (2010). Signalling theory and voluntary disclosure to the financial market. Evidence from the profitability indicators published in the annual report.
-          Dyczkowska, J., 2017. Drivers OF Strategy and R&D Disclosures.
-          Espinosa, M., Gietzmann, M., & Raonic, I. (2009). US institutional investors response to the news flow of intangibles intensive European stocks: A study of European biotech and pharma stocks. European Accounting Review, 1, 63–92.
-          Haji poor, B., Darzian Azizi, A. & Shamsi Gooshki, S. (2012). Investigating the impact of product- market strategy and the marketing capabilities of the firm on market performance. , 4(7), 54-87 (In Persian).
-          Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1), pp. 405-440.
-          Hyderpur, F. & Alavi, K. (2015). Effect of Diversity Strategy on the Performance of Companies Accepted in Tehran Stock Exchange by Entropy Criteria. Accounting and Auditory Reviews, Vol. 22, No. 3, pp. 400-385 (In Persian).
-          Kamyabi Y, Saberi F.(2017). Impact of Corporate Social Responsibility on the Relationship between the Disclosure of the Cost of Research and Development (R&D) and Stock Returns. quarterly financial accounting journal. 2017; 9 (33) :51-77 (In Persian).
-          Khatami, B. & Mehdizadeh, H. (2008). Comparative Study and Evaluation of Strategic Planning Models and Presentation of a New Programming Framework. Tomorrow's Management MagazineNo. 19, pp. 53-34 (In Persian).
-          Mashayekh, S., Shery, S. & Shahi, M. (2011). the role of research and development spending and capital budgeting decisions in high-tech companies. The Ninth National Accounting Conference of Iran, Zahedan, Sistan and Baluchestan University, (In Persian).
-          Mehrpooyafar, N. (2017). Investigating the effect of R&D information disclosure level on capital cost (case study of active companies in the chemical, pharmaceutical and food industry accepted in Tehran Stock Exchange). Master's thesis, Mazandaran University, Faculty of Economics and Administration, (In Persian).
-          Moradi, M., sepahvandi, S. (2015). The Impact of Competitive Strategies on Stability of Financial Performance and Risk. Journal of Financial Accounting Research, 7(3), 90-75 (In Persian).
-          Nayebzadeh, S. & Salari Abarghuoi, M. (2014). The Relationship Between Strategy-Structure Fit And Performance In Family Firms (Case Study: family firms based in the industrial town of Yazd province). Journal of Management Accounting and Auditing Knowledge, 3) 10( (In Persian).
-          Ortega, M.J.R., (2010). Competitive strategies and firm performance: Technological capabilities’ moderating role. Journal of Business Research, 63(12), 73–81.
-          Porter, M., 1985. Competitive advantage; Creating and sustaining superior performance. New York: Free Press.
-          Rajiv, D. B., Raj, M., & Arindam. T. (2014). Does a Differentiation Strategy Lead to More Sustainable Financial Performance than a Cost Leadership Strategy? Management Decision, 52 ) 5( 872 – 896.
-          Rihab, G., & Younes, B. (2016). Determinants of R&D (Research and Development) disclosure in France.
-          Safari, A., Torkestani, M., Moradi, P. & Golshahi, B. (2014). The Effect of Competitive Forces on the Performance of Private Insurance Companies in Iran: The Role of Competitive Combined Strategies. Iranian Journal of Insurance Research, 29(114), 211-234 (In Persian).
-          Sharifi, A. (2017). the Impact of Corporate Strategy on the Market Reaction to Profit Statement in Companies Accepted in Tehran Stock Exchange. Master's Thesis, Mazandaran University, Faculty of Economics and Administration, (In Persian).
-          Success, Y. & Saberi, F.(2017). Effect of disclosing research and development costs on the relationship between product market competition and stock returns. International Conference on Management and Accounting of 2017.
-          Ullmann, A. A. (1985). Data in Search of a Theory: A Critical Examination of the Relationships among Social Performance, Social Disclosure, and Economic Performance of U. S. Firms. Academy of Management Review, 10(3), pp.540-557.

Files

History

  • Receive Date: 18 October 2018
  • Revise Date: 12 December 2018
  • Accept Date: 30 January 2019

Share

How to cite

Statistics