Corporate governance mechanisms and R&D intensity in OECD courtiers
ISSN: 1472-0701
Article publication date: 9 June 2020
Issue publication date: 15 July 2020
Abstract
Purpose
This study aims to investigate the impact of ownership structure and board structure on risk-taking as measured by research and development (R&D) Intensity in OECD countries.
Design/methodology/approach
A panel data of 300 companies from Anglo American and European countries between 2010 and 2016 were used. The ordinary least square multiple regression analysis procedure is used to examine the relationships. The findings are robust to alternative measures and endogeneities.
Findings
The results show that institutional ownership, board size, independent directors and board diversity are negatively related to risk-taking, with greater significance among Anglo American countries than among Continental European countries. In contrast, the results show that director ownership is statistically insignificant.
Originality/value
This study extends and contributes to the extant corporate governance (CG) literature, by offering new evidence on the effect of ownership and board structure on risk-taking between two different traditions. The findings will help regulators and policy-makers in the OECD countries in evaluating the adequacy of the current CG reforms to prevent management misconduct and scandals. These findings are relevant for companies aiming to adopt the most suitable governance mechanisms to pursue their R&D objectives and for policymakers interested in promoting R&D investment.
Keywords
Citation
AlHares, A. (2020), "Corporate governance mechanisms and R&D intensity in OECD courtiers", Corporate Governance, Vol. 20 No. 5, pp. 863-885. https://doi.org/10.1108/CG-11-2019-0349
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited