IDEAS home Printed from https://ideas.repec.org/a/ibf/ijbfre/v17y2022i1p13-34.html
   My bibliography  Save this article

The Impact Of Board Composition And Ownership Structure On Innovation Performance: An Empirical Study In Taiwan’S Electronics Industry

Author

Listed:
  • Hsiang-Tsai Chiang
  • Cheng-Chun Chao
  • Tzu-Yu Ou

Abstract

This research measures innovation performance from the perspective of R&D investment and patent rights and explores the impact of different board compositions and shareholding structures on corporate innovation performance. This study goes on to discuss whether the composition of the board of directors can be balanced with the shareholding structure, which will have a different impact on the company’s innovation performance. The sample used in this study is a sample of Taiwan’s listed OTC electronics industry for a total of five years from 2014 to 2018. The innovation value chain is used to measure the company’s innovation performance, from “input (R&D expenditure) → intermediate output (patent rights) → final output (Sales) “conducted an empirical analysis. The results show that the composition of the board of directors and the shareholding structure have inconsistent effects on the company’s innovation value chain, which may be beneficial to investment in research and development but not conducive to the final output (sales). External and independent directors can increase the independence of the board of directors, and can adjust the ratio of shareholding and deviation of control rights and cash flow rights of directors and supervisors, which will have a positive impact on innovation performance.

Suggested Citation

  • Hsiang-Tsai Chiang & Cheng-Chun Chao & Tzu-Yu Ou, 2023. "The Impact Of Board Composition And Ownership Structure On Innovation Performance: An Empirical Study In Taiwan’S Electronics Industry," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 17(1), pages 13-34.
    • Handle: RePEc:ibf:ijbfre:v:17:y:2022:i:1:p:13-34
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v17n1-2023/IJBFR-V17N1-2022-2.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Board Composition; Ownership Structure; Board Independence; Innovation Performance;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:ijbfre:v:17:y:2022:i:1:p:13-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.