Title: Corporate governance mechanisms and R&D intensity in OECD countries

Authors: Aws AlHares

Addresses: School of Business Management and Information Technology, University of Doha for Science and Technology, Qatar; Department of Accountancy and Finance, Business School, University of Huddersfield, Queensgate Campus, Queensgate, Huddersfield, HD1 3DH, UK

Abstract: The effect of ownership structure and board structure on risk-taking as calculated by R&D intensity in OECD countries is investigated in this study. Around 2010 and 2019, a panel of 300 businesses from Anglo-American and European countries were used. The relationships are investigated using the ordinary least square multiple regression analysis technique. The findings are robust to alternative measures and endogeneities. The findings suggest that institutional ownership, board size, independent directors, and board diversity all have a negative impact on risk-taking, with Anglo-American countries having a greater impact among Continental European countries. Director ownership, on the other hand, is statistically insignificant, according to the findings. This study contributes to the current corporate governance literature by providing additional evidence on the impact of ownership and board structure on risk-taking in two different cultures. The findings will help OECD regulators and policymakers in assessing the effectiveness of recent corporate governance reforms in preventing management misconduct and scandals.

Keywords: corporate governance; R&D intensity; OECD; agency theory; board structure; ownership structure.

DOI: 10.1504/IJCG.2021.117211

International Journal of Corporate Governance, 2021 Vol.12 No.1, pp.36 - 56

Accepted: 17 Apr 2021
Published online: 13 Aug 2021 *

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