Corporate governance practices and companies' R&D orientation: evidence from European countries
AbstractThis working paper empirically investigates if corporate governance practices affect the resources firms devote to R&D. The authors Florence HonorÃ©, Federico Munari and Bruno van Pottelsberghe found that an executive remuneration system that is linked to the firm's financial performance has a particularly strong negative impact on R&D. This confirms the hypothesis that incentive mechanisms lead managers to focus on more predictable and easily measurable short-term activities,ultimately hampering the commitment to innovative projects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bruegel in its series Working Papers with number 492.
Date of creation: Jan 2011
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-14 (All new papers)
- NEP-INO-2011-05-14 (Innovation)
- NEP-PPM-2011-05-14 (Project, Program & Portfolio Management)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruegel).
If references are entirely missing, you can add them using this form.