Board reforms and innovation

Muhammad Farooq Ahmad, Saqib Aziz, Michael Dowling and Oskar Kowalewski ()

International Review of Financial Analysis, 2023, vol. 88, issue C

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.

Keywords: Corporate governance; Board reforms; Corporate law; Innovation; Research and development (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Board reforms and innovation (2023)
Working Paper: Board Reforms and Innovation (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:88:y:2023:i:c:s1057521923002235

DOI: 10.1016/j.irfa.2023.102707

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