Corporate Governance, Innovation and Firm Age: Insights and New Evidence

Stefano Bianchini (), Jackie Krafft, Francesco Quatraro and Jacques-Laurent Ravix ()

No 2015-05, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: This paper investigates the relationship between corporate governance (CG) and innovation according to firms’ age by combining insights from the recent strand of contributions analysing CG and innovation with the lifecycle literature. We find a negative relationship between CG and innovation which is stronger for young firms than for mature ones. The empirical analysis is carried out on a sample of firms drawn from the ISS Risk Metrics database and observed over the period 2003-2008. The parametric methodology provides results that are consistent with the literature and supports the idea that mature firms are better off than young ones. We check for possible non-linearities by implementing a non-parametric analysis and suggest that the negative relationship between CG and innovation is mostly driven by higher values of CG.

Keywords: Corporate governance; Age; Lifecycle; Innovation; Non-parametric regression; ISS Risk Metrics (search for similar items in EconPapers)
JEL-codes: G30 L10 L20 O33 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2015-01
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-ind, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Corporate Governance, Innovation and Firm Age: Insights and New Evidence (2015)
Working Paper: Corporate Governance, Innovation and Firm Age: Insights and New Evidence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2015-05

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