The moderating effects of the board of directors on the relationship between R&D investment and firm performance

2011 ◽  
Vol 6 (3) ◽  
pp. 264 ◽  
Author(s):  
Basma Sellami Mezghanni
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Moderating Effects ◽  
The Board Of Directors ◽  
The Relationship ◽  
D Investment

BOARD OF DIRECTORS AS A FACTOR OF FIRM PERFORMANCE IN INNOVATIVE COMPANIES

2019 ◽  
Vol 23 (06) ◽  
pp. 1950060
Author(s):  
IRINA BEREZINETS ◽  
KIRILL BEREZKIN ◽  
YULIA ILINA ◽  
IRINA NAOUMOVA
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Board Of Directors ◽  
Public Companies ◽  
Composition And Structure ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship ◽  
D Investment

The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company’s innovative activities remain inconclusive. This paper investigates the relationship between a board of directors’ composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011–2013, we found a positive relationship between the boards’ independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

scholarly journals Board, governance and firm performance: Are financial intermediaries different?

2011 ◽  
Vol 8 (2, Special issue) ◽  
pp. 60-68 ◽  
Author(s):  
Marina Brogi
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Financial Intermediaries ◽  
Board Governance ◽  
Return On Assets ◽  
Board Size ◽  
Financial Firms ◽  
The Board Of Directors ◽  
And Performance ◽  
The Relationship

Drawing on Agency Theory this article investigates the relationship between board size and European firms’ performance. The focus is on the implicit differences between financial and non-financial firms. In particular the paper addresses the following questions: does board size influence firm performance? Is financial intermediaries’ corporate governance different from that of non-financial companies? The study analyses the governance of the largest listed European companies which make up the Eurotop 100 index. Companies come from 12 different countries and are subject to different regulatory and self-discipline codes. Referring to the Eurotop index the focus is on the relation between the overall size of the board of directors and the level of performance measured as Tobin’s Q and Return on Assets. Diverging results emerge depending on the typology of the firm. In particular, results suggest that for non-financial companies large boards negatively influence firm performance, whereas financial intermediaries seem to be different because of the non-relation between their board size and performance.

scholarly journals Directors’ board, R&D investment and the firm’s performance: Evidence from the French case

2014 ◽  
Vol 10 (2) ◽  
pp. 85-101 ◽  
Author(s):  
Zouari Ghazi ◽  
Zouari-Hadiji Rim
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
The Other ◽  
Double Structure ◽  
The Board Of Directors ◽  
French Case ◽  
Points Of View ◽  
The One ◽  
The Relationship ◽  
D Investment

This study examines the relationship between the board of directors and firm performance in terms of the level of R&D investment in the French context and some corporate governance points of view. Our model seeks to show whether the level of investment in R&D acts as an intermediary variable between, on the one hand, the dominance of external directors, the double structure and size of the board of directors, and, on the other, productivity. This empirical study is based on a sample of 178 French firms for the period 2008-2012. The results of the linear regression show that the relationship between the variables associated with the composition of the board of directors and the effectiveness of the company depends on the level of investment of the company in R&D.

scholarly journals The Relationship and Impact between Board of Director Criteria towards Firm Performance for Companies Listed on Bursa Malaysia: Trading and Services Sector

2017 ◽  
Vol 3 (1) ◽  
pp. 51-59
Author(s):  
Noorul Farha Mohd Jumali ◽  
Mohd Abdullah Jusoh ◽  
Syed Ismail Syed Mohamad
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Company Performance ◽  
Tobin’S Q ◽  
Governance Mechanism ◽  
Tobin's Q ◽  
Services Sector ◽  
The Board Of Directors ◽  
The Relationship

This research aims to investigate the relationship and impact between the board of directors criteria towards the company's performance. We hypothesized that the board of the directors criteria will increase the firm performance since board of the directors are viewed as one of the corporate governance mechanism that should be effective in monitoring and advice the management to protect the interest of shareholders. In this study, analysis of panel data has been used. The company's performance was measured by Return on Assets (ROA) and Tobin's Q. Using 159 listed firms in Trading and Services Sector from 2007 to 2013, our study exhibit that the size of the board of directors (BODSIZE) had significant and positive relationship on ROA and Tobin's Q. This shows when BODSIZE increases, the performance of the company will also increase. Next, CEO duality and independent board of directors (PERBODIND) had no significant relationship with ROA and Tobin's Q. Overall, good corporate governance is important to improve the company’s performance. The implication of this study is that it may affect various parties and include investors, financial institutions, academia, corporations, and governments in making judgments, decisions or improvements to corporate governance and company performance.

scholarly journals Exploring the Interaction Effects of Board Meetings on Information Disclosure and Financial Performance in Public Listed Companies

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 139
Author(s):  
Noor Azuddin Yakob ◽  
Norraidah Abu Hasan
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Agency Theory ◽  
Board Of Directors ◽  
Information Disclosure ◽  
Interaction Effects ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
The Board Of Directors ◽  
The Relationship

The board of directors’ role is paramount in businesses because it reflects the organisation’s ability to earn investor confidence and improve financial performance. This paper aims to examine the relationship between environmental and social (ES) information disclosure and firm financial performance and the interaction effects of board meetings on the relationship between ES and firm performance in Malaysian publicly traded firms from 2013 to 2017. This article contributes to the theoretical foundations of the agency theory as it relates to the corporate governance function. The agency theory framework is used to capture the inherent interrelationships between the board of directors and firm performance. The study’s findings indicate that a firm’s relationship between ES and financial performance, measured by Tobin Q and return on equity, may be significantly affected by board meetings.

scholarly journals Directors’ board, R&D investment and firm’s performance: Evidence from France

2015 ◽  
Vol 11 (1) ◽  
pp. 107-122
Author(s):  
Zouari Ghazi ◽  
Zouari-Hadiji Rim
Keyword(s):  
Corporate Governance ◽  
Empirical Study ◽  
Board Of Directors ◽  
Outside Directors ◽  
Investment Level ◽  
The Board Of Directors ◽  
The One ◽  
The Relationship ◽  
D Investment ◽  
Linear Regressions

This research examines the relationship between the board of directors and firm’s performance through the R&D investment-level in the French context from perspectives of corporate governance. Our model seeks to identify if the R&D investment-level acts as a mediating variable between, on the one hand, the dominance of outside directors, the dual structure and the board size, and secondly, the performance. The empirical study is based on a sample of 178 French firms for the period 2008-2012. The results of the linear regressions conducted show that the relationship between boards composition linked variables and the firm performance are meditated by the firm R&D investment-level.

scholarly journals Board of directors specificities in the context of Portuguese corporate governance and corporate law

2019 ◽  
Vol 1 (1) ◽  
pp. 41-57 ◽  
Author(s):  
Elisabete Vieira ◽  
Joaquim Neiva
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Corporate Law ◽  
Positive Relation ◽  
Listed Firms ◽  
The World ◽  
The Board Of Directors ◽  
The Relationship ◽  
State Of Art

The corporate governance is a mechanism to protect investors in the markets around the world. This study analyses the board of directors’ specificities in the context of Portuguese Corporate Governance, and study the corporate governance effect of Portuguese listed firms on firm performance. The results show that the Latin Model (Two-Tier Model) is the most (least) adopted by Portuguese firms. The percentage of executive members is higher than that of non-executive members. In the year of 2014, women held only 9.5% of positions on board, which is very low. The results concerning the relationship between corporate governance and firms’ performance are not consensual. Although some studies find evidence of a positive relation between the two variables, others find no relationship. With this study, we contribute to the state of art of corporate governance in a country which investigation is still scarce.

scholarly journals Does a Customer on the Board of Directors Affect Business-to-Business Firm Performance?

2018 ◽  
Vol 83 (1) ◽  
pp. 8-23 ◽  
Author(s):  
Raghu Bommaraju ◽  
Michael Ahearne ◽  
Ryan Krause ◽  
Seshadri Tirunillai
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Board Member ◽  
Demand Uncertainty ◽  
Customer Orientation ◽  
Objective Measure ◽  
Organizational Fit ◽  
The Board Of Directors ◽  
The Relationship ◽  
Business To Business

The authors hypothesize that customer presence in the boardroom of business-to-business (B2B) firms brings customer orientation and customer knowledge to the board of directors and thereby enhances B2B firm performance. Using an objective measure of customer presence in the boardroom and a sample of 329 B2B firms over a nine-year period, the authors find support for this hypothesis. Moreover, relying on the resource-based view, they hypothesize that the performance benefit of customers in the boardroom is contingent on the value, rarity, inimitability, and organizational fit of customer resources. Specifically, they find that a customer on the board is more effective when demand uncertainty is high but is less effective when the firm is highly diversified. Moreover, a board member who is an independent director of the customer firm is less effective than a board member who is an executive at the customer firm. The authors also find that research and development intensity partially mediates the relationship between customer presence on the board and firm performance.

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