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Board Reforms and Innovation

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  • Muhammad Farooq Ahmad

    (SKEMA Business School – University Cote d’Azur, Avenue Willy Brandt - 59777, Lille, France)

  • Oskar Kowalewski

    (IESEG School of Management, LEM-CNRS 9221)

Abstract

We study the effect of board reforms on firms’ research and development (R&D) investments utilizing a sample of 40 countries. Using a difference-in-differences analysis, we find that firmsinvest more in R&D following corporate governance reforms. Of these, two reforms–havingan independent audit committee and board independence–have a greater impact on R&Dinvestment. Additionally, we show that reforms have the largest impact on R&D investmentin hi-tech industries and the health sector.

Suggested Citation

  • Muhammad Farooq Ahmad & Oskar Kowalewski, 2021. "Board Reforms and Innovation," Working Papers 2021-ACF-03, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:f202103
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    Cited by:

    1. Li, Weibin & Huang, Yingling & Zhou, Hongyong & Liu, Xin, 2024. "CEO power, internal control quality, and entrepreneurial innovation spirit in family enterprises," International Review of Financial Analysis, Elsevier, vol. 95(PA).

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    More about this item

    Keywords

    Corporate Governance; Board Reforms; Innovation; Research and Development;
    All these keywords.

    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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