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Does R&D Mediate the Link Between Corporate Governance and Enterprise Value? Evidence From Family Firms Across Jurisdictional Contexts

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  • Ella Xu

Abstract

This study examines the mediating effect of R&D investment on the relationship between corporate governance and enterprise value, considering ownership (i.e., family vs. non‐family firms) and jurisdictional differences (i.e., common law vs. civil law). Using a multinational sample from 2009 to 2018, this study reveals that R&D negatively and partially mediates the relationship between corporate governance and enterprise value, with a more substantial effect in family firms within a civil law context. This supports the assumption that family firms are more conservative towards R&D investment. This study highlights the need for strategic decision‐making to consider ownership differences and legal context in shaping enterprise value.

Suggested Citation

  • Ella Xu, 2025. "Does R&D Mediate the Link Between Corporate Governance and Enterprise Value? Evidence From Family Firms Across Jurisdictional Contexts," Economics and Politics, Wiley Blackwell, vol. 37(3), pages 880-902, November.
    • Handle: RePEc:bla:ecopol:v:37:y:2025:i:3:p:880-902
    DOI: 10.1111/ecpo.12345
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    References listed on IDEAS

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    Cited by:

    1. Jingmiao Li & Dehong Liu & Ella Guangxin Xu, 2026. "Director Network and Corporate Digital Technology Innovation: The Role of Resource and Peer Effects," Economics and Politics, Wiley Blackwell, vol. 38(1), pages 122-141, March.

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