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Investissement En R&D Et Performance De L'Entreprise : L'Effet Moderateur De La Gouvernance D'Entreprise

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  • Basma Sellami Mezghanni

    (LGC - Laboratoire de Gestion et de Cognition - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse)

Abstract

The purpose of this research is to examine the moderating effect of ownership structure and board of directors, as governance mechanisms, on the relationship between research and development (R&D) investment and firm performance. The study conducted on a sample of French companies listed on Euronext Paris in 2006 shows that the effect of R&D spending on firm performance is positive and significant. However, this effect varies significantly with the characteristics related to ownership structure and board of directors. In general, the results show that ownership concentration, chief executive officer and chairman duality and the presence of a strategic committee within the board have a positive effect on R&D spending - firm performance relationship. Nevertheless, institutional investor ownership, managerial ownership, board size and independent directors have a negative effect on R&D spendingfirm performance relationship. These findings suggest that the positive effect of R&D spending on firm performance is more favourable in firms characterised by a high ownership concentration, a low institutional and managers' ownership, a limited board size, composed of a small proportion of independent directors, whose directors have a strong equity shareholdings, opting for CEO duality and having a strategic committee.

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  • Basma Sellami Mezghanni, 2009. "Investissement En R&D Et Performance De L'Entreprise : L'Effet Moderateur De La Gouvernance D'Entreprise," Post-Print halshs-00459415, HAL.
    • Handle: RePEc:hal:journl:halshs-00459415
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00459415
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