Using a panel dataset for 369 firm-year observations during the period 2005-2013 in the Italian context, we investigate the impact of certain characteristics of corporate boards on the magnitude of corporate Research and Development (R&D). Our findings reveal a negative relationship between R&D and board size on the one hand and between R&D and board ownership on the other hand. Moreover, we find strong evidence of a positive and statistically significant relationship between R&D and independent corporate board directors. In addition, we also find a relationship between R&D and board diversity effect, as measured by women and foreign members on the boardroom. Our study uses multiple econometric models to address endogeneity issues.
Does the Board of Directors Affect the Extent of Corporate R&D? Evidence from Italian listed companies
Rossi F;
2015-01-01
Abstract
Using a panel dataset for 369 firm-year observations during the period 2005-2013 in the Italian context, we investigate the impact of certain characteristics of corporate boards on the magnitude of corporate Research and Development (R&D). Our findings reveal a negative relationship between R&D and board size on the one hand and between R&D and board ownership on the other hand. Moreover, we find strong evidence of a positive and statistically significant relationship between R&D and independent corporate board directors. In addition, we also find a relationship between R&D and board diversity effect, as measured by women and foreign members on the boardroom. Our study uses multiple econometric models to address endogeneity issues.Pubblicazioni consigliate
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