Arbeitspapier
Corporate governance practices and companies' R&D orientation: Evidence from European countries
This paper empirically investigates if corporate governance practices affect the resources firms devote to R&D. Two databases - one on governance ratings and the other on R&D intensity - are merged to obtain a multi-country, multi-sector sample of 279 European companies involved in R&D activities. The relationship is found to be negative: a higher governance score correlates with lower R&D intensity. An executive remuneration system that is linked to the firm's financial performance has a particularly strong negative impact on R&D. This confirms the hypothesis that incentive mechanisms lead managers to focus on more predictable and easily measurable short-term activities, ultimately hampering the commitment to innovative projects. Other factors include the equal treatment of shareholders, the absence of anti-takeover devices and severance pay.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bruegel Working Paper ; No. 2011/01
- Klassifikation
-
Wirtschaft
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
Technological Change: Choices and Consequences; Diffusion Processes
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- Thema
-
R&D intensity
corporate governance
remuneration
shareholder rights
Corporate Governance
Betriebliche Forschung
Managervergütung
EU-Staaten
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Honoré, Florence
Munari, Federico
van Pottelsberghe de la Potterie, Bruno
- Ereignis
-
Veröffentlichung
- (wer)
-
Bruegel
- (wo)
-
Brussels
- (wann)
-
2011
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Honoré, Florence
- Munari, Federico
- van Pottelsberghe de la Potterie, Bruno
- Bruegel
Entstanden
- 2011
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