This paper empirically investigates whether corporate governance practices affect the resources firms devote to R&D. Two databases – one on governance ratings and the other on R&D intensity – are merged to obtain a multi-country, multi-sector sample of 279 European companies involved in R&D activities. The relationship is found to be negative: a higher governance score correlates with lower R&D intensity. An executive remuneration system that is linked to the firm’s financial performance has a particularly strong negative impact on R&D. Other factors include the equal treatment of shareholders and the absence of anti-takeover devices.
Corporate governance practices and companies' R&D orientation: Evidence from European countries / Honore F; Munari F; Van Pottelsberghe de la Potterie B. - ELETTRONICO. - (2011), pp. 1-25.
Corporate governance practices and companies' R&D orientation: Evidence from European countries
MUNARI, FEDERICO;
2011
Abstract
This paper empirically investigates whether corporate governance practices affect the resources firms devote to R&D. Two databases – one on governance ratings and the other on R&D intensity – are merged to obtain a multi-country, multi-sector sample of 279 European companies involved in R&D activities. The relationship is found to be negative: a higher governance score correlates with lower R&D intensity. An executive remuneration system that is linked to the firm’s financial performance has a particularly strong negative impact on R&D. Other factors include the equal treatment of shareholders and the absence of anti-takeover devices.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
