In this paper, we examine the moderating role of bank relationships in the association between accounting quality and investment efficiency in a bank-centered economy. We expect that the positive impact of accounting quality on investment efficiency will be reduced for firms with close bank relationships because banks mitigate adverse ion problems. Consistent with the prediction, we find that Keiretsu affiliation, bank loan, and bank ownership reduce the role of accounting quality in improving investment efficiency. We also find evidence that public financing increases the association between accounting quality and investment efficiency while banks’ dual-holdings reduce the effect of accounting quality on investment efficiency. Overall, we provide evidence that bank relationships substitute financing reporting in improving investment efficiency in a bank centered economy and adds to our understanding on the relation between accounting quality and investment efficiency documented by Biddle and Hilary (2006).

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This study develops a theoretical model of the influence of R&D inputs and processes on R&D outputs.
Structural equation modeling analysis by using 154 IT SMEs in Daegu-Gyeongbuk provides a support for the hypotheses. The result showed that HRM for R&D have positive influence on R&D plan. R&D plan have positive influence on external network, internal cooperation, and technological innovation. Besides internal cooperation positively influence technological innovation.
The implications of these findings, limitations, and future research directions were also discussed.

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