Corporate governance and R&amp;D investment by European listed companies

Rodrigues, Ricardo; Samagaio, António; Felício, Teresa

doi:10.1016/j.jbusres.2019.11.070

Cited by 53 publications

(28 citation statements)

References 52 publications

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“…Drawing on previous studies on CEO individual characteristics and innovation investment, we employed control variables from firm financial level, corporate governance level, and CEO individual level ( Galasso and Simcoe, 2011 ; Wang et al, 2017 ; Rodrigues et al, 2020 ; Zhang et al, 2021 ). The firm-financial-level control variables included the return on total assets (ROA), total assets turnover (ATO), cash flow ratio (CFR), liabilities-to-assets ratio (Lev), firm size (FS), and firm age (FA).…”

Section: Methodsmentioning

confidence: 99%

Celebrity CEOs and firm innovation investment: Evidence from Chinese-listed companies

Shao

Zhao

et al. 2022

Front. Psychol.

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In today’s commercial-oriented world, intense social attention makes it easier for CEOs to become celebrities. This social escalation and characteristic change of CEOs into celebrities tend to influence their motivation and behavior, and thus the strategic decisions and results of firms. Despite the significance of recognizing CEOs’ social identity, the impact of celebrity CEOs on innovation strategy remains unknown. Integrating identity and upper echelons theories, this study examines and provides empirical evidence on how celebrity CEOs affect firm innovation investment using data of Chinese listed companies from 2015 to 2020. We argue that celebrity CEOs’ engagement in innovation investment is driven by their motivation for preserving celebrity status. Further, we show that analyst coverage plays a positive moderating role between celebrity CEOs and innovation investment, and the positive effect of celebrity CEOs on innovation investment becomes weaker in state-owned enterprises. This study confirms the important role of CEOs’ specific social identity in firm innovation strategy, which is motivated by celebrity CEOs’ attempt to maintain their established status and reputation. The results expand the research on the influencing factors of firm innovation investment that focus on executives’ social characteristics. They also provide managerial implications for board of directors to recruit and supervise a celebrity CEO.

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Section: Methodsmentioning

confidence: 99%

Celebrity CEOs and firm innovation investment: Evidence from Chinese-listed companies

Shao

Zhao

et al. 2022

Front. Psychol.

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“…Firstly, panel analysis was applied because it mitigates heterogeneity concerns (Baltagi, 2013). This method has been widely used in corporate governance research (Rodrigues et al, 2020). In particular, we used the random-effects model (REM) and fixed-effects model (FEM) to analyse the estimated model.…”

Section: Methodsmentioning

confidence: 99%

“…In the second stage of the analysis, fsQCA, a variant of qualitative comparative analysis (QCA), was applied to investigate the impact of different configurations of governance mechanisms, extending the findings from the panel analysis (Rodrigues et al, 2020). Compared with the other subsets of QCA (i.e.…”

Section: Methodsmentioning

confidence: 99%

Revisiting the interconnection between governance mechanisms and firm performance: evidence from Vietnamese listed firms

Tran

Nguyen

Wang

2021

JEC

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Purpose Corporate governance plays a critical role in solving agency problems. However, previous findings on how governance mechanisms lead to high firm performance are inconclusive. Additionally, this relationship has not been well addressed in the context of transitional countries where governance systems and mechanisms are weak, leaving a gap for research. Hence, this study aims to shed light on the effects of four key governance components, namely, ownership concentration, chief executive officer duality, board size and gender diversity, on firm performance. Design/methodology/approach This study reports on the econometric panel data analysis and fuzzy-set qualitative comparative analysis (fsQCA) of 1,424 firm-year observations from listed companies in Vietnam covering the period of 2010–2017. Findings The econometric panel data analysis confirmed the net effects of single solitary governance components. FsQCA revealed equifinal configurations of components that explain high firm market- and accounting-based performance. Practical implications These findings are relevant for firms in transitional and emerging markets, aiming to adopt the most suitable internal mechanisms to pursue their performance objectives and for regulators interested in enhancing the advantages of the capital market. Originality/value This study provides empirical evidence that firm performance can be improved when the appropriate corporate governance mechanisms are selected. As there are equifinal paths leading to the desired outcome of high performance, firms from different industrial and national contexts should mindfully apply any uniform corporate governance code.

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“…The ensuing pressures on executives may create a premium on decision makers with varied social statuses (Kish-Gephart and Campbell, 2015). We extend the concept of corporate governance by examining the role of multiple cognitive schemas and heuristics effects on R&D decision making (Rodrigues et al, 2020).…”

Section: Research and Development Investment Decision Makingmentioning

confidence: 99%

Pre-entrepreneurship social status and research and development investment decision: Evidence from Chinese private enterprises

Niu

Zhou

2022

International Small Business Journal

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Social status is seen as an important topic in management and organisational sciences. Despite the extensive research on the upper echelons of management, little is known about the influence of social status on R&D investment decisions. We examine the effects of pre-entrepreneurial social status on R&D investments based on imprinting theory, using 2000–2014 data for 20,177 Chinese private small- and medium-sized enterprises. The results reveal that entrepreneurs with an upper and lower social status show a stronger tendency to make R&D investments than middle-class counterparts. The findings are robust to various sensitivity tests. In addition, we explore the moderating influences of political capital and institutional environment, both of which enhance the positive relationship between social status and R&D investments. Our study finds that social status has a lasting and varying impact on decisions to engage in innovation behaviours. The findings contribute to research on Chinese firm innovation and offer key implications for social status and imprinting theorising.

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Corporate governance and R&D investment by European listed companies

Cited by 53 publications

References 52 publications

Celebrity CEOs and firm innovation investment: Evidence from Chinese-listed companies

Celebrity CEOs and firm innovation investment: Evidence from Chinese-listed companies

Revisiting the interconnection between governance mechanisms and firm performance: evidence from Vietnamese listed firms

Pre-entrepreneurship social status and research and development investment decision: Evidence from Chinese private enterprises

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