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Board reforms and innovation

Author

Listed:
  • Muhammad Farooq Ahmad

    (SKEMA Business School)

  • Saqib Aziz

    (ESC [Rennes] - ESC Rennes School of Business)

  • Michael Dowling

    (DCU - Dublin City University [Dublin])

  • Oskar Kowalewski

    (IÉSEG School Of Management [Puteaux], LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study the effect of board reforms on firms' research and development (R&D) investments utilizing a sample of 41 countries. Using a difference-in-differences analysis, we find that firms invest more in R&D following corporate governance reforms. Of these, two legal reforms — having an independent audit committee and board independence — have a greater impact on R&D investment. Additionally, we show that board reforms have a more pronounced effect on R&D investment in hi-tech industries and the health sector.

Suggested Citation

  • Muhammad Farooq Ahmad & Saqib Aziz & Michael Dowling & Oskar Kowalewski, 2023. "Board reforms and innovation," Post-Print hal-04159126, HAL.
    • Handle: RePEc:hal:journl:hal-04159126
    DOI: 10.1016/j.irfa.2023.102707
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    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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