The influence of independent directors, insider ownership and scientific connections on risky r&d investments: evidence from emerging markets

Anastasia Stepanova () and Tereshchenko A.
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Tereshchenko A.: HSE

Journal of Corporate Finance Research Корпоративные финансы, 2016, issue 3 (39), 5-23

Abstract: R&D projects in the pharmaceutical industry are extremely risky and bring benefits in the long-run period. Self-interested managers try to avoid risk and underinvest in R&D. In this paper we study the effect of independent directors, insider ownership and scientific connections on R&D investments. Independent directors and insider ownership can mitigate the agency problem by additional monitoring and convergence of interests. Scientific collaborations promote technological development and increase R&D. The research reveals the difference of the effects in emerging and developed markets.

Keywords: INDEPENDENT DIRECTORS; CORPORATE GOVERNANCE; R&D INVESTMENTS; INSIDER OWNERSHIP; SCIENTIFIC CONNECTIONS; EMERGING MARKETS (search for similar items in EconPapers)
Date: 2016
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