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Banker on board and innovative activity

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  • Ghosh, Saibal

Abstract

Employing data on publicly listed manufacturing firms in India during 2001–2012, the paper examines whether banker–director on firm board influences R&D activities. Evidence indicates that firms with commercial banker–director invest significantly less in R&D, although no such evidence is forthcoming for investment banker–directors. A disaggregation of firms based on the extent of equity and board presence suggests that group-affiliated firms with commercial banker nominees are less likely to engage in innovative activity.

Suggested Citation

  • Ghosh, Saibal, 2016. "Banker on board and innovative activity," Journal of Business Research, Elsevier, vol. 69(10), pages 4205-4214.
  • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4205-4214
    DOI: 10.1016/j.jbusres.2016.03.004
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