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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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    Cited by:

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    2. Min Jung Kang & Y. Han (Andy) Kim & Qunfeng Liao, 2020. "Do bankers on the board reduce crash risk?," European Financial Management, European Financial Management Association, vol. 26(3), pages 684-723, June.
    3. Mahamadou Biga-Diambeidou & Maria Giuseppina Bruna & Rey Dang & L’Hocine Houanti, 2021. "Does gender diversity among new venture team matter for R&D intensity in technology-based new ventures? Evidence from a field experiment," Small Business Economics, Springer, vol. 56(3), pages 1205-1220, February.
    4. Braun, Matías & Briones, Ignacio & Islas, Gonzalo, 2019. "Interlocking directorates, access to credit, and business performance in Chile during early industrialization," Journal of Business Research, Elsevier, vol. 105(C), pages 381-388.
    5. Liu, Yu, 2020. "The comparative and interactive effects of political, academic and financial directors," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 546-565.
    6. Min Jung Kang & Andy (Y. Han) Kim, 2017. "Bankers on the Board and CEO Incentives," European Financial Management, European Financial Management Association, vol. 23(2), pages 292-324, March.
    7. Saibal Ghosh, 2018. "Corporate investment and political federalism: does judicial efficiency matter?," Indian Economic Review, Springer, vol. 53(1), pages 263-285, December.
    8. Vidya Sukumara Panicker & Rajesh Srinivas Upadhyayula & Sumit Mitra, 2023. "Lender representatives on board of directors and internationalization in firms: an institutionalized agency perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(1), pages 75-98, March.

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