The Direct and Indirect Impact of Ownership on Research and Development (R&D) - A study on 50 largest publicly traded firms during 2005-2010:

Abstract: This essay investigates the direct as well as the indirect relation between ownership and R&D-to-Sales, using capital structure variables as intermediaries. The data sample of the study is based on the 50 largest publicly traded firms in Sweden for the period of 2005-2010. Although previous literature suggested the prevalence of a relation between ownership and R&D, our analysis has shown it is far more spurious than though before. Nevertheless, by studying the empirical results along with the causal relation that we have envisaged for the text along with vetted econometric techniques as well as solid theoretical overview - we have been able to provide and interesting peek into some of the more dynamic factors impacting R&D.