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What’S Inside The Mind Of A Ceo? The Effects Of Discretionary Slack Resources On R&D Investment, Seunghye Lee, Won-Yong Oh, Young K. Chang
What’S Inside The Mind Of A Ceo? The Effects Of Discretionary Slack Resources On R&D Investment, Seunghye Lee, Won-Yong Oh, Young K. Chang
Management, Entrepreneurship and Technology Faculty Publications
This study investigates the effects of discretionary slack resources on a firm’s R&D investment. Specifically, we examine whether and how a CEO’s psychological traits play a role in the relationship between discretionary slack and R&D investment. Using a panel sample from U.S. manufacturing firms in 2006–2010, we found that slack resources lead to an increase in R&D intensity. Furthermore, this positive effect is stronger when CEOs have a strong promotion focus and perceive an addressable negative attainment discrepancy. Thus, our findings show how (a) the level of discretionary slack and (b) CEOs’ promotion focus and aspiration level jointly shape R&D …