The impact of corporate governance practices on R&D efforts: a look at shareholders’ rights, cross-listing and control pyramid

Stéphane Lhuillery ()
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Stéphane Lhuillery: Chaire en Economie et Management de l'Innovation, Ecole Polytechnique Fédérale de Lausanne

CEMI Working Papers from Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation

Abstract: The paper considers the impact of multiple shareholder-oriented governance practices on R&D decisions. Based on a sample of 5,713 firms belonging to 110 large French listed business groups, our results substantiate the idea that shareholder-oriented governance practices and a lower position in a control pyramid are better for R&D investment. The introduction of any additional shareholder oriented practice is found to result in more R&D. We show however that this Anglo-Americanization of the French corporate governance system is only partial. We provide evidence of the co-existence of an old French system of corporate governance with a hybrid model of corporate governance. The lack of concrete results on complementarity among shareholder oriented governance practices casts doubt on the stability of this hybrid model in the French context.

Keywords: Corporate governance; R&D; innovation; provisions (search for similar items in EconPapers)
JEL-codes: G31 G32 O31 O32 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2006-01, Revised 2009-04
New Economics Papers: this item is included in nep-cse, nep-eec, nep-fin, nep-ino and nep-tid
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